Earnings Predictions
for the
Week Beginning November 20, 2017

-- A HAPPY THANKSGIVING AHEAD! --

by Ian Harvey

November 20, 2017

Share
I THANK YOU

Last Week’s Successful Recommended Options Trades Results for:

“ARMCHAIR” MEMBERS

DATE TRADE GAIN
November 14, 2017 SPLK DEC 15 2017 70.000 CALL 264%

“CUT-TO-THE-CHASE” MEMBERS

DATE TRADE GAIN
November 15, 2017 AMAT DEC 15 2017 57.500 CALL P.P: 136%
November 16, 2017 CSCO 2017 35.000 DEC 15 CALL P.P: 225%

“ALL INCLUSIVE” MEMBERS

DATE TRADE GAIN
November 14, 2017 SPLK DEC 15 2017 70.000 CALL 264%
November 15, 2017 AMAT DEC 15 2017 57.500 CALL P.P: 136%
November 16, 2017 CSCO 2017 35.000 DEC 15 CALL P.P: 225%

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 13, 2017              

Earnings Results for the Week Beginning November 13, 2017

DATE TRADE GAIN
November 14, 2017 YY DEC 15 2017 90.000 CALL P.P: 406%
November 16, 2017 TGT DEC 15 2017 92.500 CALL P.P: 420%

NOTE: P.P: – Potential Profit


Options Trades to Consider Based on Expected Earnings Reports:

Monday, November 20

Urban Outfitters, Inc. (NASDAQ:URBN) – will report third-quarter earnings after the market closes. Analysts are expecting revenue to fall 0.2% to $861 million and earnings per share to decline from $0.40 to $0.33. However, the Earnings Whisper number is $0.34 per share; and the stock has been surging since its second-quarter report overcame a low bar as it is up 41% over the last three months.

This Philadelphia, PA-based company is likely to benefit from new store openings, increase in direct penetration, growing wholesale operations, technology advancements and merchandising improvements.

Also, better product execution and an effective inventory management will help augment the company's performance. Management is revamping stores and bringing in more compelling assortments. The company is also strategically investing in shop-in-shops.

Given the low expectations coming into this round and the strong results from its peers, Urban could report to the upside once again come Monday.

Option trade to consider: Buy the URBN DEC 15 2017 28.000 CALL at approximately $1.60.

Agilent Technologies Inc. (NYSE:A) – will report fiscal fourth-quarter 2017 results after the market closes. Agilent expects to post revenues between $1.15 billion and $1.17 billion and non-GAAP earnings per share in the range of 60-62 cents. Analysts anticipate revenues of $1.17 billion and earnings of 63 cents per share; and the Earnings Whisper number is $0.65 per share.

Consensus estimates are for year-over-year earnings growth of 6.78% with revenue increasing by 5.31%. Short interest has decreased by 25.8% since the company's last earnings release. Overall earnings estimates have been revised higher since the company's last earnings release.

Agilent has a strong capital management policy in place. Based in Palo Alto, CA, this company's initiatives are well supported by its solid cash flow generation, which in turn is driven by sustained solid operational performance.

Moreover, Agilent's efforts toward enhancing shareholder wealth through dividends are impressive.

The company's solid market position, acquisition strategy and increased focus on segments with growth potential remain major growth drivers.

Option trade to consider: Buy the A DEC 15 2017 70.000 CALL at approximately $1.35.

Palo Alto Networks Inc. (NYSE:PANW) – will report after the market closes. The consensus earnings estimate is $0.69 per share on revenue of $489.09 million and the Earnings Whisper number is $0.72 per share. The company's guidance was for earnings of $0.67 to $0.69 per share on revenue of $482.00 million to $492.00 million. Consensus estimates are for year-over-year earnings growth of 213.64% with revenue increasing by 22.86%. Option traders are pricing in a 10.7% move on earnings and the stock has averaged a 14.1% move in recent quarters.

Palo Alto had been the darling of its peer group for years following multiple quarters of 50%-plus total revenue growth. Analysts covering the stock believe the company's to-be-reported quarterly results will likely benefit from continued product ramp-ups, acquisitions and strategic partnerships.

Palo Alto is growing rapidly in the cybersecurity space on the back of its innovative next-generation security platforms. The company's security platforms have innovative traffic classification engine which helps it identify network traffic by application, user and content.

Over the last two years, the company has launched several subscription-based products, including WildFire, AutoFocus, Aperture, Traps and Virtual, which have been witnessing strong adoption among organizations.

The company's innovative product portfolio and continued efforts to enhance the same with advanced features helps Palo Alto win new deals. Notably, during fourth-quarter fiscal 2017, the company added nearly 3,000 customers, bringing the total to over 42,500 worldwide. It is to be noted that in each of the last 22 quarters, Palo Alto has added at least 1,000 customers.

The company's to-be-reported quarterly result is likely to add a sizable number of new customers, which, in turn, will drive Palo Alto's top line.

Palo Alto's impending launch of its new Application Framework, slated for early next year, will introduce a new software-as-a-service model giving customers access to a suite of cloud-based security services and APIs from both Splunk and more than 30 leading security organizations. CEO Mark McLaughlin noted that the company has enjoyed "a lot of excitement and positive feedback" surrounding the framework, and argues it could disrupt the cyber-security industry yet again -- much in the same way their Next-Gen Security Platforms are already doing by overshadowing legacy firewall and antivirus solutions.

Option trade to consider: Buy the PANW DEC 15 2017 150.000 CALL at approximately $4.90.

Tuesday, November 21

Lowe's Companies, Inc. (NYSE:LOW) – is set to release third-quarter fiscal 2017 results before the market opens. The consensus earnings estimate is $1.02 per share on revenue of $16.55 billion and the Earnings Whisper number is $1.03 per share. This reflects a sharp improvement of roughly 16% from 88 cents in the year-ago quarter.

Consensus estimates are for year-over-year earnings growth of 15.91% with revenue increasing by 5.15%. Short interest has decreased by 18.4% since the company's last earnings release.

An improving job scenario, housing market recovery, merchandising initiatives and post hurricane construction activities along with efforts to enhance omni-channel capabilities bode well for Lowe's. It also remains well-positioned to reap the benefits of strategic acquisitions done earlier such as that of RONA. In an effort to strengthen relationship with pro customers, the company has concluded the acquisition of Maintenance Supply Headquarters, the distributor of maintenance, repair and operations products.

Option trade to consider: Buy the LOW DEC 15 2017 82.500 CALL at approximately $1.30.  

Chico's FAS, Inc. (NYSE:CHS) – the specialty apparel retailer will report its third-quarter numbers ahead of the market open. The company is set to report third-quarter earnings on Nov. 21. Analysts are expecting earnings per share (EPS) to fall from $0.20 to $0.13, and a revenue decline of 9.8% to $538.2 million. With a low bar like that, the stock could bounce back on a decent quarter.

The street is expecting earnings to fall in-line with the consensus, as the whisper number for the quarter is also 13 cents per share.

It's been a rough year for Chico's as the stock is down 44% so far. CHS has greatly underperformed the market over the last year, but shares have been trending sideways for the last two months, forming solid support above the $7.25 level. With a P/E of just 11.3, the downside is probably limited at this time.

Option trade to consider: Buy the CHS DEC 15 2017 8.000 CALL at approximately $0.45.

Wednesday, November 22

Campbell Soup Company (NYSE:CPB) – is scheduled to report its fiscal first-quarter results before the market opens. Analysts forecast earnings of $0.97 per share, down from $1.00 during the same period last year. The street has a whisper number of a penny above the consensus, which should be enough to push the stock higher if the company is able to hit that whisper number.

Campbell Soup is on track with its four core plans including focus on real food philosophy and transparency, undertaking robust digital endeavors, portfolio diversification and concentrating on growing its snacks brands. Meanwhile, the company is progressing well with its cost savings plan, which evidently helped it achieve gross margin, EBIT and earnings growth in fiscal 2017.

Two straight disappointing quarterly reports in May and August drove CPB shares sharply lower, but enthusiasm has started to come back to the stock, which has started to erase some of its recent losses.

Option trade to consider: Buy the CPB DEC 15 2017 50.000 CALL at approximately $1.70.

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!!


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!

Options traders are not successful because they win.

Options traders win because they are successful.

Back to Stock Options Made Easy Home Page from Earnings Predictions for the Week Beginning November 20, 2017



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