Earnings Predictions
for the
Week Beginning December 11, 2017

-- Rounding Up The Stragglers!

by Ian Harvey

December 11, 2017

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Rounding Up

Last Week’s Successful Recommended Options Trades Results for:

“CUT-TO-THE-CHASE” & “ALL INCLUSIVE” MEMBERS

DATE TRADE GAIN
December 05, 2017 AEO DEC 15 2017 17.000 CALL P.P: 138%
December 05, 2017 DG DEC 15 2017 95.000 CALL P.P: 83%
December 05, 2017 OLLI DEC 15 2017 50.000 CALL P.P: 159%
December 05, 2017 AEO DEC 15 2017 17.000 CALL P.P: 138%

Don’t miss out – check out further options trades recommended for the week ahead by becoming a member of Stock Options Made Easy.

A Look Back At Earnings Predictions for Week Beginning November 27, 2017              

Earnings Results for the Week Beginning November 20, 2017

DATE TRADE GAIN
December 05, 2017 GIII DEC 15 2017 30.000 CALL P.P: 174%
December 05, 2017 AZO DEC 15 2017 720.000 CALL P.P: 364%
December 06, 2017 LULU DEC 15 2017 70.000 CALL P.P: 100%
December 07, 2017 MTN DEC 15 2017 230.000 CALL P.P: 156%

NOTE: P.P: – Potential Profit


Options Trades to Consider Based on Expected Earnings Reports:

Monday, December 11

Casey's General Stores Inc. (NASDAQ:CASY) -- operating convenience stores under the name Casey's General Store in approximately 10 Midwestern states, in Iowa, Missouri, and Illinois, will report earnings after the market closes.

The consensus earnings estimate is $1.38 per share on revenue of $2.13 billion and the Earnings Whisper number is $1.42 per share. Investor sentiment going into the company's earnings release has 71% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 4.17% with revenue increasing by 10.93%.

Consensus estimates are for earnings to decline year-over-year by 4.17% with revenue increasing by 10.93%.

Overall earnings estimates have been revised lower since the company's last earnings release.

Casey’s derives ~60% of its total revenue by selling fuel. The business is highly unpredictable due to underlying volatility in fuel prices. Since the Fuel segment is Casey’s largest segment, its performance defines the company’s overall performance in any given quarter. The segment recorded a year-over-year decline in sales during eight quarters between 3Q15 and 2Q17. Since 2Q17, fuel sales have gained momentum and shown strength.

Casey’s has missed consensus revenue expectations in the last five consecutive quarters and bottom-line expectations in four of the five quarters.

Option trade to consider: Buy the CASY JAN 19 2018 120.000 PUT at approximately $2.35.


Tuesday, December 12

Mongodb Inc. (NASDAQ:MDB) - a United States-based modern, general purpose database platform, will report Q3 results after the bell. Analysts are expecting MDB to report an EPS of -$0.48, on revenue of $37.2 million, implying 41% y/y growth.

This is MongoDB's first earnings quarter since going public in October; and the stock has traded sideways since the October IPO, succumbing to concerns over its wide losses and open-source, "freemium" business model.

The stock is cheap at 5.4x EV/FTM revenues, and should begin to recover on the back of a strong quarter.

MongoDB's analyst expectations have set a pretty low hurdle for the company to cross. The quarter looks like an easy one to beat, especially given the fact that read-through from companies like Cloudera is fully supportive.

Given that consensus expectations seem muted and the stock has already priced in plenty of pessimism, MongoDB should have plenty of room to run further post-earnings.

Option trade to consider: Buy the MDB DEC 15 2017 25.000 CALL at approximately $1.00.  

Wednesday, December 13

Nordson Corporation (NASDAQ:NDSN) – engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces, will report the fiscal Quarter ending Oct 2017 after the market closes.

Based on 8 analysts' forecasts, the consensus EPS forecast for the quarter is $1.32. The reported EPS for the same quarter last year was $1.39.

The company anticipates sales to increase in the range of 4-8% year over year in the fiscal fourth quarter. Acquisitions are likely to contribute 10% to sales growth while foreign currency movements are expected add 1%. Operating margin will likely be 21%. For the year, organic revenue growth is predicted to be 6% while adjusted earnings per share are anticipated to increase 12% year over year to $5.24.

A solid product portfolio, wide international operations and synergistic benefits from acquired assets have strengthened the company’s prospects. It currently has $7.4 billion market capitalization.

Nordson is poised to gain from its vast customer base in the packaging, nonwovens, polymer processing, products assembly, electronic systems, fluid management, test and inspection, container coating, curing and drying systems, liquid finishing and powder coating end markets. Also, its technologically advanced products, including single-use components, stand-alone units for low-volume operations and microprocessor-based automated systems for high-speed, high-volume production lines, give it a competitive edge.

International diversity has played a major role in the company’s profitability over time. It has operations in more than 35 countries, with manufacturing facilities primarily in the United States, People’s Republic of China, Germany, Mexico, the Netherlands, Thailand and the United Kingdom. In third-quarter fiscal 2017 (ended Jul 31, 2017), the company sourced nearly 69% of its revenues from international operations.

Option trade to consider: Buy the NDSN JAN 19 2018 135.000 CALL at approximately $2.00.

ABM Industries, Inc. (NYSE:ABM) – a provider of integrated facility solutions, will report its quarterly earnings after the market closes. Wall Street analysts expect $0.46 earnings per share, down $0.05 or 9.80 % from last year’s $0.51 same quarter earnings. This translates into $29.96 million profit for ABM giving the stock a 21.78 P/E. This is assuming the current $0.46 EPS is accurate.

ABM Industries, Inc.’s Wall Street analysts see -9.80 % negative EPS growth, taking into account the $0.51 EPS reported in the previous quarter.

ABM Industries has risen 26.04% since November 21, 2016 and is up-trending. It has outperformed by 9.34% the S&P500.

Among 4 analysts covering ABM Industries, 3 have Buy rating, 0 Sell and 1 Hold.

Option trade to consider: Buy the ABM JAN 19 2018 45.000 CALL at approximately $1.00.

Thursday, December 14

Sanderson Farms, Inc. (NASDAQ:SAFM) -- one of the nation's largest poultry producers reports fiscal Q4 earnings after the market closes. The consensus earnings estimate is $3.62 per share on revenue of $919.12 million. Consensus estimates are for year-over-year earnings growth of 7.74% with revenue increasing by 16.22%.

Overall earnings estimates have been revised higher since the company's last earnings release.

The results will follow a massive run-up in the company's stock this year, propelled by equally-massive consumer appetites for chicken, which is seen by younger people as a healthier dining option.

Sanderson Farms is building a plant in Texas to keep up with demand.

Option trade to consider: Buy the SAFM JAN 19 2018 175.000 CALL at approximately $4.30.

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!!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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