by Ian Harvey
November 09, 2019
These are the results for earnings predictions for selected
companies last week.
“Earnings Predictions” members made potential
profits of 567%.
For the more cautious trader, by exiting before
the earnings report, a potential profit of 216.5%.
EARNINGS PREDICTIONS RESULTS FOR WEEK BEGINNING NOVEMBER 04, 2019
|DATE||TRADE||EXITING BEFORE EARNINGS||GAIN/LOSS AFTER EARNINGS|
|November 04, 2019||UBER NOV 15 2019 30.000 PUT||17.5% P.P.||185% P.P.|
|November 06, 2019||CVS NOV 15 2019 67.500 CALL||38% P.P||218% P.P|
|November 06, 2019||ROKU NOV 15 2019 150.000 CALL||66% P.P||-100%|
|November 06, 2019||SQ NOV 15 2019 65.000 CALL||32% P.P.||107% P.P.|
|November 07, 2019||DIS NOV 15 2019 135.000 CALL||28% P.P||200% P.P|
|November 07, 2019||TTD NOV 15 2019 205.000 CALL||35% P.P||-43%|
Uber reported earnings on Monday, November 04, and shares
declined to their lowest closing price on record Tuesday, after another
quarterly loss of more than $1 billion. Shares continued to fall Wednesday
after its IPO lock-up period expired.
The company's third-quarter earnings surpassed the Consensus Estimate by 3.5% and grew 13.8% year over year, on the back of higher revenues, and strength in both segments, UnitedHealthcare and Optum. However, slowdown of growth in international operations and underperformance in Medicaid business are some concerns.
Shares have gained 7% in the past six months. The company stands apart in the industry by virtue of healthcare services, technology and innovations offered by its unit, Optum.
Numerous acquisitions made by the company have led to inorganic growth. Its solid balance sheet and consistent cash flow generation enable investment in business. Also, capital management by dividend payout and share buyback is another positive. Strong earnings guidance by the company instills confidence.
YOU NEED TO BE IN TO PROFIT!
Following Wednesday’s earnings, the stock was pushed to a single-digit P/S multiple. This was due to a marginally lower than expected Q4 revenue guidance spelling anxiety for investors and traders at ROKU’s rich valuation.
And any excuse for traders and investors to sell-off this stock following its enormous run-up this year. Roku set year-to-date returns of 400%, or more, back in September. The firm’s sales growth has been accelerating with year-over-year growth of more than 50% for the past 3 quarters.
ROKU just reported its 8th straight top and bottom-line earnings beat in its after-hours earnings release Wednesday, November 6th, but the markets ripped the shares down over 16% the following day.
Square earnings and revenue for its third quarter topped
analyst estimates amid solid growth for the company's Square Cash consumer app.
The earnings report and preliminary fiscal 2020 guidance sent Square stock up
Square, late Wednesday, said that adjusted earnings rose 92%
to 25 cents a share, with adjusted revenue rising 40% to $602 million. A year
earlier, the digital payment processor earned 13 cents a share on sales of $431
Square said third-quarter gross payment volume from merchant customers rose 25% to $28.2 billion, topping estimates of $27.9 billion.
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Walt Disney announced more aggressive streaming plans after earnings topped fiscal Q4 forecasts. Disney stock jumped Friday, closing the day up 3.8% at $137.96.
Disney earnings per share fell 28% to $1.07, but beat views for 95 cents. Revenue jumped 33.5% to $19.1 billion, topping views for $19.03 billion.
Direct-to-consumer revenue shot up to $3.43 billion from $825 million a year ago, though operating losses widened to $740 million from $340 million on streaming investments. Media networks revenue rose 22% to $6.51 billion, lifted by the addition of Fox assets, but ESPN's income fell on higher programming costs and ABC saw lower ad revenue and higher costs.
Parks revenue grew 8% to $6.66 billion, helped by higher ticket prices and guest spending.
The Trade Desk traded higher Friday on the heels of their better Q3 results where they beat on earnings and revenue.
The Trade Desk came out with quarterly earnings of $0.75 per share, beating the Consensus Estimate of $0.67 per share. This compares to earnings of $0.65 per share a year ago.
This quarterly report represents an earnings surprise of 11.94%. A quarter ago, it was expected that this digital-advertising platform operator would post earnings of $0.68 per share when it actually produced earnings of $0.95, delivering a surprise of 39.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
The Trade Desk posted revenues of $164.20 million. This compares to year-ago revenues of $118.83 million. The company has topped consensus revenue estimates three times over the last four quarters.
The Trade Desk shares have added about 67.5% since the beginning of the year versus the S&P 500's gain of 22.7%.
What Now after Earnings Predictions.....?
Also, read the article “Exiting Options Trades BEFORE or AFTER Earnings Reports Comparison!”
What will “Stock Options Made Easy” advise members to do?
What companies will be featured in next week's Earnings Predictions?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!