Earnings Predictions
for the
Week Beginning April 30, 2018

Hang In There --  Better Times Ahead!!

by Ian Harvey

April 30, 2018

Hanging In There!

“RESULTS for EARNINGS PREDICTIONS”

DATE TRADE GAIN
March 26, 2018 RHT APRIL 20 2018 150.000 CALL P.P: 200%
March 27, 2018 RH APRIL 20 2018 80.000 CALL P.P: 158%
March 28, 2018 GME APRIL 20 2018 14.000 PUT P.P: 65%
March 28, 2018 WBA APRIL 20 2018 65.000 CALL P.P: 38%
March 29, 2018 STZ APRIL 20 2018 230.000 CALL P.P: 20%
April 03, 2018 PLAY APRIL 20 2018 40.000 PUT P.P: 42%
April 04, 2018 KMX APRIL 20 2018 60.000 PUT P.P: 19%
April 04, 2018 AYI APRIL 20 2018 135.000 PUT P.P: 247%
April 05, 2018 CONN APRIL 20 2018 35.000 CALL P.P: 48%
April 10, 2018 MSM MAY 18 2018 90.000 PUT P.P: 23%
April 11, 2018 BBBY MAY 18 2018 20.000 PUT P.P: 205%
April 12, 2018 DAL MAY 18 2018 52.500 PUT P.P: 26%
April 13, 2018 JPM MAY 18 2018 110.000 CALL P.P: 69%++
April 13, 2018 C MAY 18 2018 70.000 CALL P.P: 98%++
April 16, 2018 NFLX MAY 18 2018 320.000 CALL P.P: 54%++
April 18, 2018 AXP MAY 18 2018 95.000 CALL P.P: 270%++
April 20, 2018 CLF MAY 18 2018 7.000 CALL P.P: 130%++
April 24, 2018 CAT MAY 18 2018 155.000 CALL P.P: 79%
April 25, 2018 FB MAY 18 2018 170.000 CALL P.P: 89%
April 26, 2018 MSFT MAY 18 2018 95.000 CALL P.P: 37%
April 27, 2018 CVX MAY 18 2018 125.000 CALL P.P: 103%

NOTE: P.P: – Potential Profit

Options Trades to Consider Based on Expected Earnings Reports:

Monday, April 30

Cambridge-based Akamai Technologies, Inc. (NASDAQ:AKAM), a provider of content delivery and cloud infrastructure services for the delivery of content and applications over the Internet, will report Q1 earnings after the market closes. The Consensus Estimate for earnings is pegged at 70 cents, representing a rise of 1.5% from the year-ago quarter. Analysts project revenues of roughly $654 million, up 7.4% from the year-ago quarter.

Akamai’s cloud security business is taking off, due to rising demand for cloud-infrastructure solutions, security, mobile products, and online video and adoption of cloud services on a large scale by data centers; which poses significant growth opportunities for Akamai.

And an upcoming change in privacy laws should create more business for this division.

Akamai is likely to continue witnessing high level of network traffic on its platform, which is a major tailwind for the company. Also, the company completed the Nominum acquisition in November last year. This has helped the company expand its presence among carrier and enterprise customers.

The two recently-launched products - Enterprise Threat Protector and Bot Manager Premier - are likely to attract new customers. Akamai expects revenues from the security business to exceed $1 billion within the next four to five years, driven by strong adoption of Kona Site Defender, Prolexic, Bot Manager and Web Application Protector Product offerings.

As well, expansion of the security-product portfolio will lower Akamai's dependence on media delivery solutions. Further, rapid growth in security is expected to offset loss of large customers in the CDN space.

Option trade to consider: Buy the AKAM MAY 18 2018 72.500 CALL at approximately $2.60.

Tuesday, May 01

Payment processing and point-of-sale upstart Square Inc. (NYSE:SQ), will report earnings after the market closes. The consensus earnings estimate is $0.06 per share on revenue of $623.75 million. But the Earnings Whisper number is $0.07 per share.

The company's guidance was for earnings of $0.03 to $0.05 per share on revenue of $290.00 million to $295.00 million. Consensus estimates are for year-over-year earnings growth of 300.00% with revenue increasing by 35.14%.

The red-hot company builds hardware and software products that help merchants accept payments, streamline operations, and analyze business information. Square also offers lending services via Square Capital and HR services through Square Payroll.

Square announced that it has agreed to buy Weebly, a website-building service, for $365 million in a cash and stock deal. This could help Square accelerate its growth in two key ways -- e-commerce sales volume and international expansion.

Adding a website-building platform to Square's growing ecosystem could pay off tremendously for the company, and the acquisition's price tag could end up looking like a bargain.

"Omnichannel commerce is our top focus area in 2018," according to Alyssa Henry, Square's seller lead. "Whether they're an artist, a winemaker, or a hairdresser, with Square and Weebly sellers will have one cohesive solution to build their business."

With 625,000 paying subscribers and little overlap with Square's current merchant base, this creates tremendous opportunity to cross-sell Square's other services.

In addition to creating omnichannel solutions, one of Square's top priorities is expanding its international footprint.

Option trade to consider: Buy the SQ MAY 18 2018 48.000 CALL at approximately $2.55.

Option trade to consider: Buy the SQ MAY 18 2018 48.000 CALL at approximately $2.55.

Wednesday, May 02

Tech heavyweight Apple Inc. (NASDAQ: AAPL) will report earnings after the market closes. The consensus earnings estimate is $2.69 per share on revenue of $61.33 billion. But the Earnings Whisper number is $2.80 per share.

The company's guidance was for earnings of $2.54 to $2.73 per share. Consensus estimates are for year-over-year earnings growth of 28.10% with revenue increasing by 15.94%.

AAPL stock has fallen 9% in just the last eight trading sessions, as fears about iPhone X sales continue to mount; with short interest increasing by 20.4% since the company's last earnings release.

As replacement cycles lengthen and lower-end products improve, iPhone sales are going to slow, and eventually, growth will turn negative.

Increasingly, some analysts and investors appear to believe that peak has arrived.

Estimates continue to come down, with Bernstein cutting its outlook on Friday. One analyst this week wrote that the Street is in “full panic mode ", as supply chain checks show weak demand for the X.

Option trade to consider: Buy the AAPL MAY 18 2018 150.000 PUT at approximately $1.20.

Thursday, May 03

The maker of electric cars Tesla Inc. (NASDAQ:TSLA) is set to report results after the market closes. The consensus estimate is for a loss of $3.44 per share on revenue of $3.14 billion; but the Earnings Whisper number is ($3.60) per share.

Consensus estimates are for earnings to decline year-over-year by 74.62% with revenue increasing by 16.46%.

Short interest has increased by 24.7% since the company's last earnings release while the stock has drifted lower by 14.3% since then.

Analysts, investors, and even rating service Moody's are convinced that Tesla will have to raise capital this year. Analyst price targets have come down steadily, and will continue to do so if Q1 disappoints at all.

Also, overall earnings estimates have been revised lower since the company's last earnings release.

It's no doubt a big quarter for Tesla - and it leads to a very real risk of a significant decline in TSLA stock.

The chart does not look particularly healthy, with an early April rally based on better production numbers already fading.

Investors are tired of missed targets and broken promises.

 Option trade to consider: Buy the TSLA MAY 18 2018 285.000 PUT at approximately $12.60.

Friday, May 04

The Chinese e-commerce goliath Alibaba Group Holding Ltd (NYSE:BABA), an online and mobile commerce company, will report before the market opens. The consensus earnings estimate is $0.87 per share on revenue of $9.20 billion; but the Earnings Whisper number is for $0.92 per share. Consensus estimates are for year-over-year earnings growth of 50.00% with revenue increasing by 64.14%.

Short interest has decreased by 3.4% since the company's last earnings release.

Shares have fallen nearly 14% off their highs from early January. However, the charts show that shares of Alibaba may have found bottom after retesting support around $163 and suggests that shares could rise by 15% from its current price around $174.75, taking the stock back over $200. 

Analysts are bullish on Alibaba, as well, and are looking for shares to climb by 26.5% to an average price target of $223. Analysts are looking for significant growth rates out of Alibaba in the coming years, with revenue seen growing by nearly 30% in fiscal 2020 to $70.75 billion, while earnings are seen jumping by 28% to $8.50 per share.

Analysts are overwhelmingly bullish on the stock, with 98% of the 49 analysts covering the stock rating it a buy or outperform, and have an average price target of $223.50, nearly 28% higher than the current stock price of $174.75.

Option trade to consider: Buy the BABA MAY 18 2018 185.000 CALL at approximately $3.80.

An Important Note: That these 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.

If you wish to receive more options trading recommendations similar to this, which will help boost your portfolio strategy, get on board with the members of Stock Options Made Easy.

Our proven track record says it all!!

Back to Stock Options Made Easy Home Page from Earnings Predictions for the Week Beginning April 30, 2018



Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.







Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name