Earnings Predictions
for the
Week Beginning March 05, 2018

Pick a Direction – The Preference Is Up!

by Ian Harvey

March 05, 2018

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Up Up Up!

“LAST WEEK'S RESULTS FOR MEMBERS OF STOCK OPTIONS MADE EASY”

DATE TRADE GAIN
February 26, 2018 CRM APRIL 20 2018 120.000 CALL 100%
February 26, 2018 SQ MARCH 16 2018 47.000 CALL P.P: 48%
February 27, 2018 ETSY APRIL 20 2018 22.500 CALL P.P: 300%
February 27, 2018 ETSY APRIL 20 2018 22.500 CALL P.P: 300%
February 28, 2018 TMUS APRIL 20 2018 62.500 CALL P.P: 62.5%
March 01, 2018 JCP MARCH 16 2018 4.000 PUT P.P: 73%

“RESULTS for EARNINGS PREDICTIONS for LAST WEEK ”

DATE TRADE GAIN
February 26, 2018 PANW MARCH 16 2018 170.000 CALL P.P: 87%%
February 27, 2018 M MARCH 16 2018 25.000 PUT -75%
February 28, 2018 LOW MARCH 16 2018 95.000 PUT P.P: 332%
March 01, 2018 AMBA MARCH 16 2018 47.500 PUT P.P: 107%
March 01, 2018 FL MARCH 16 2018 45.000 PUT P.P: 300%

NOTE: P.P: – Potential Profit

Options Trades to Consider Based on Expected Earnings Reports:

Monday, March 05

YY Inc (ADR) (NASDAQ:YY) -- a leading live streaming social media platform in China, will report earnings after the market closes. The consensus earnings estimate is $1.84 per share on revenue of $543.33 million. The Earnings Whisper number is for a $1.90 per share.

The company's guidance was for revenue of $512.00 million to $528.00 million. Consensus estimates are for year-over-year earnings growth of 31.43% with revenue increasing by 51.86%.

Short interest has decreased by 27.4% since the company's last earnings release. Overall earnings estimates have been revised higher since the company's last earnings release.

After crushing analyst expectations again last quarter, YY looks to continue its uptrend as shares have risen more than 175% over the past 12 months. Over the last seven quarters, YY has beaten expectations every single time, and this trend is expected to continue.

Analysts are bullish on YY…..

  • Citi began coverage with analyst Hillman Chan starting YY with a price target of $150, implying upside of nearly 20%. Chan is bullish as he sees 26% CAGR for live streaming from over the next three years.
  • New Street launched coverage last week with a Buy rating. The firm set a price target of $180, implying more than 40% upside.

Option trade to consider: Buy the YY MARCH 16 2018 135.000 CALL at approximately $5.50.

Tuesday, March 06

Autodesk, Inc. (NASDAQ:ADSK) -- a design software and services company, will report earnings after the market closes. The consensus estimate is for a loss of $0.11 per share on revenue of $544.51 million.                         

The company's guidance was for a loss of $0.14 to $0.10 per share on revenue of $537.00 million to $547.00 million. Consensus estimates are for year-over-year earnings growth of 73.17% with revenue increasing by 13.72%.

Short interest has increased by 31.7% since the company's last earnings release. Overall earnings estimates have been revised lower since the company's last earnings release.

The company continues to expect decline in maintenance plan subscriptions. Additionally, slowdown in cloud subscription is also a headwind.

Although the company plans to keep spending unchanged over the next year, it remains concerned about increasing foreign exchange headwinds, which might weigh heavily on its expenses. Moreover, its restructuring plan will remain an overhang on margins.

Option trade to consider: Buy the ADSK MARCH 16 2018 110.000 PUT at approximately $2.50.

Wednesday, March 07

Okta Inc (NASDAQ:OKTA) - a United States-based cybersecurity provider, will report Q4 results late Wednesday.

Okta which went public last April, pre-released some financials on Feb. 22 and put revenue at $77 million-$77.5 million, about 58% growth, with an operating loss of $12.3 million-$11.3 million. Analysts see a per-share loss of 15 cents on revenue of $74 million.

Okta is leading the way in what's called identity and access management (IAM), which allows companies to control what its employees have access to. The global IAM market is expected to be worth nearly $21 billion by 2022, and Okta is quickly becoming the go-to company in this segment.

The company increased its top line by 61% in the third quarter, and subscription revenue jumped by 64%, year over year. The company works with all companies, both big and small, but has been able to grow its sales from more lucrative large companies lately. Okta's large customers (those with at least $100,000 in annual recurring revenue) jumped by more than 50% in the most recent quarter.

Investors will have to wait for the profits from Okta, as the company is currently spending its money to grow its business, but early investors are likely to be pleased with the results. 

Option trade to consider: Buy the OKTA APRIL 20 2018 40.000 CALL at approximately $1.50.

Thursday, March 08

Kroger Co (NYSE:KR) -- an operator of retail food and drug stores, multi-department stores, jewelry stores and convenience stores across the United States, will report earnings before the market opens. The consensus earnings estimate is $0.63 per share on revenue of $30.84 billion. Consensus estimates are for year-over-year earnings growth of 18.87% with revenue increasing by 11.69%.

Short interest has decreased by 50.9% since the company's last earnings release while the stock has drifted higher by 0.1% from its open following the earnings release to be 10.7% above its 200 day moving average of $24.70. Overall earnings estimates have been revised higher since the company's last earnings release.

Looking at the chart it appears that Kroger faces some dangers, particularly with the 20-day moving average reverting from support to resistance.

And again, it seems that investors are again concerned about the direction of the grocery industry. KR itself has pulled back over 10% from late January highs.

If Kroger doesn't post a blowout report on Thursday morning, that pullback very well could extend.

Option trade to consider: Buy the KR APRIL 20 2018 27.000 PUT at approximately $1.35.

American Eagle Outfitters (NYSE:AEO) -- a specialty retailer, operating over 1,000 retail stores and online at ae.com and aerie.com in the United States and internationally, will report earnings before the market opens. Analysts expect American Eagle Outfitters to report $0.44 EPS. They anticipate $0.05 EPS change or 12.82 % from last quarter’s $0.39 EPS. AEO’s profit would be $78.01 million giving it 11.52 P/E if the $0.44 EPS is correct.   

American Eagle Outfitters has declined 31.50% since March 3, 2017 and is down-trending. It has underperformed the S&P500 by 48.20%.

AEO appears to be a hopeless victim of the Amazon effect that has convinced many investors that traditional bricks and mortar retailers will not survive despite expanding into digital channels.

Option trade to consider: Buy the AEO APRIL 20 2018 20.000 PUT at approximately $1.35.

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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