Earnings Predictions
for the
Week Beginning May 07, 2018

Stock Market Holding Steady Despite The Conditions!
Ready For The Next Leg Up!

by Ian Harvey

May 07, 2018

Hold Steady!

Last Week”

April 30, 2018 AKAM MAY 18 2018 72.500 CALL P.P: 38%
May 01, 2018 SQ MAY 18 2018 48.000 CALL P.P: 25%
May 03, 2018 TSLA MAY 18 2018 285.000 PUT P.P: 21%
May 04, 2018 BABA MAY 18 2018 185.000 CALL P.P: 96%


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, May 07

Movie theater operator AMC Entertainment Holdings Inc (NYSE: AMC), will report first-quarter earnings after the market closes. Consensus calls for earnings of seven cents per share, in-line with the same period last year.

After a rough 2017 which saw multiple negative earnings surprises, analysts expect to see the company grow profits by a modest 6.2% per annum over the next five years.

The street expects to see a positive earnings surprise, with a whisper number of nine cents per share versus the consensus seven cents.

Based on AMC Entertainment’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $1.42 billion and GAAP net loss of $276 million. In comparison, last year the company earned revenue of $1.28 billion and had a net profit of $8.4 million.

Wedbush analyst Michael Pachter upgraded AMC Entertainment to Buy recently and set a price target of $25.

Currently, the analyst consensus on AMC Entertainment is Moderate Buy and the average price target is $22.70, representing a 38.0% upside.

AMC shares have gained 7.8% on the year.

Option trade to consider: Buy the AMC JUNE 15 2018 16.000 CALL at approximately $1.10.

Tuesday, May 08

Marriott International, Inc. (NASDAQ:MAR) reports first-quarter results after the market closes. Marriott International is the world's largest hotel company with brands like Ritz-Carlton, Renaissance Hotels and Fairfield Inn & Suites, among many others. The Consensus Estimate for earnings is calling for $1.25, higher than $1.01 in the year-ago quarter. Of late, the company's earnings estimates have been stable. In the fourth quarter of 2017, it witnessed earnings growth of 31.8% on a year-over-year basis.

Resort and hotel operators were strong in 2017, with strength in the underlying economy and low unemployment driving investor enthusiasm. Marriott has enjoyed strong earnings growth of 19.3% per annum over the last five years, and with the economy still on solid ground analysts see additional profit growth moving forward. Marriott is expected to enjoy annual earnings growth of 16.8% for the next five years, which should keep strength under the stock moving forward.

Marriott's top line in the first quarter is likely to be driven by decent RevPAR growth across both domestic and international markets, courtesy of increased scale and distribution post Starwood acquisition and strong leisure demand. Given a steady rise in business and leisure travel, and higher transaction volumes, Marriott is well-poised to grow in the near as well as long term.  In the last reported quarter, worldwide, system-wide RevPAR rose 4.6%.

Marriott is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. For 2018, it anticipates gross room additions of 7%, which is likely to continue building economics, scale, and consumer preference for its brands.

Option trade to consider: Buy the MAR JUNE 15 2018 140.000 CALL at approximately $2.80.

Headquartered in Midland, TX, Diamondback Energy Inc (NASDAQ: FANG) will report first quarter earnings after the closing bell. Analysts see EPS is jumping 53% to $1.59 as revenue soars 88.5% to $443 million.

Diamondback Energy recently declared that its first-quarter 2018 output level climbed up to 102.6 thousand barrels of oil equivalent per day (MBoe/d), showing a rise of 10% from the fourth-quarter 2017's figure of 92.9 MBoe/d. Of the total production, 74% or 75.6 thousand barrels per day was oil.

At present, the upstream energy company is running 11 drilling rigs, where five dedicated completion crews are working.

Diamondback Energy has a substantial position in the Midland and Delaware Basins and can continue to grow production rapidly for quite some time.

Diamondback also has a very low cost structure. In addition to its low cost production, Diamondback has quite low interest costs per BOE and its cash G&A costs per BOE are among the lowest in the industry.

Analysts’ outlook for the upcoming year seems positive, with earnings expanding by a robust 41.03%. This growth seems to continue into the following year with rates arriving at double digit 95.57% compared to today’s earnings, and finally hitting US$1.19B by 2021.

Diamondback Energy has performed very well as it is continuing to grow very quickly while spending within cashflow, and looks like it can grow production within cashflow another 30+% (from Q4 2017 to Q4 2018) based on current strip.

Option trade to consider: Buy the FANG JUNE 15 2018 130.000 CALL at approximately $4.70.

Wednesday, May 09

Weibo Corp (ADR) (NASDAQ:WB), a social media platform for people to create, distribute and discover Chinese-language content, is expected to report earnings after the market closes. The consensus earnings estimate is $0.47 per share on revenue of $345.00 million; but the Earnings Whisper number is for $0.49 per share.

The company's guidance was for revenue of $335.00 million to $345.00 million. Consensus estimates are for year-over-year earnings growth of 80.77% with revenue increasing by 73.19%.

Short interest has decreased by 4.7% since the company's last earnings release; also, overall earnings estimates have been revised higher since the company's last earnings release.

Analysts are very optimistic about Weibo…..

  • BidaskClub upgraded shares of Weibo from a buy rating to a strong-buy rating in a research note issued to investors on Saturday, April 14th.
  • Barclays raised their target price on shares of Weibo to $135.00 and gave the stock an overweight rating in a research report on Wednesday, January 10th.
  • ValuEngine raised shares of Weibo from a hold rating to a buy rating in a research report on Thursday, March 1st.
  • Zacks Investment Research raised shares of Weibo from a hold rating to a buy rating and set a $153.00 target price on the stock in a research report on Friday, February 23rd.
  • Benchmark raised their target price on shares of Weibo from $110.00 to $148.00 and gave the stock a buy rating in a research report on Wednesday, February 14th.
  • Finally, Jefferies Group raised their target price on shares of Weibo to $160.00 and gave the stock a buy rating in a research report on Tuesday, March 13th.

The average price target sits near $153 and implies close to 25% upside.

Option trade to consider: Buy the WB JUNE 15 2018 120.000 CALL at approximately $6.00.

 Thursday, May 10

Yelp Inc (NYSE:YELP), connecting people with local businesses by bringing word of mouth online and providing a platform for businesses and consumers to engage and transact, as well as providing local business review sites, is set to report first-quarter numbers after the bell.

YELP has a history of posting big positive earnings surprises.

Analysts expect the company to earn 15 cents per share for the quarter, versus a profit of 19 cents during the same period last year. YELP shares have gained 4.7% on the year.

Yelp is a strong growth stock, with analysts forecasting high top-line growth in the near future.

YELP has delivered on its promises, with a soaring annual revenue growth of 18.76% . Over the past five years, sales has risen 33.56%, boosted by prior years of higher capital expenditure, which most recently reached US$15.60M.

With zero-debt on its balance sheet, YELP doesn’t have to worry about maintaining a high level of cash to meet debt obligations and paying near-term interest costs. YELP has high near term liquidity, with short term assets (cash and other liquid assets) amply covering upcoming one-year liabilities, as well as long-term commitments.

Comparing YELP’s current share price to its peers based on its industry and earnings level, it’s undervalued by 22.98%, with a PE ratio of 23.69x vs. the industry average of 29.14x.

The stock has recent support above $43.00, and recent resistance below $45.50. Of the 25 analysts who cover the stock, 10 rate it a “strong buy”, three rate it a “buy”, 11 rate it a “hold”, and one rates it a “strong sell”. 

Option trade to consider: Buy the YELP MAY 18 2018 46.000 CALL at approximately $2.60.

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 May 07, 2018