by Ian Harvey
October 25, 2017
Stanley Black & Decker, Inc. (NYSE:SWK)
Here is an overview of Stanley Black & Decker, Inc. (NYSE:SWK) winning options call trade after reporting earnings. This options trade was recommended to “Stock Options Made Easy” Members on Monday, October 23, 2017 in “Cut-to-the-Chase” Recommendations - Week Beginning Monday, October 23, 2017”; producing more than expected profits within a couple of days of executing the trade!
Tool maker Stanley Black & Decker, Inc. will reports third-quarter numbers on Tuesday, October 24, before the market opens. Consensus calls for earnings of $1.86 per share, up from $1.68 during the same period last year. The street has a whisper number of $1.89, which suggests a $0.03 beat, which would be enough to push shares higher.
Also, analysts are expecting SWK to post revenues of $3.2 billion in 3Q17, a rise of 9.4% on a YoY (year-over-year) basis. In 3Q16, it reported revenues of $2.9 billion. If SWK meets analysts’ revenue expectations, it would be its third consecutive quarter of record revenues. Since 2012, its revenues have remained flat at $2.8 billion–$2.9 billion.
The housing sector remains strong, helping drive Stanley Black & Deck higher. Analysts forecast earnings growth of 12.3% during the current year, and 12.0% next year. The stock has a P/E of 20.4, which is reasonable considering the growth estimates.
Stanley Black & Decker has risen 37.1% on the year, and the stock will look to build on those gains.
** OPTION TRADE: Buy the SWK NOV 17 2017 165.000 CALL at approximately $1.60. Sell price is left to your own judgment.
Stanley Black & Decker, Inc. revealed earnings for its third quarter that gained ground from last year.
The company said its bottom line climbed to $298.2 million, or $1.95 per share. This was up from $248.9 million, or $1.68 per share, in last year's third quarter.
Analysts had expected the company to earn $1.87 per share. Analysts' estimates typically exclude special items.
The company said revenue for the quarter rose 14.6% to $3.30 billion. This was up from $2.88 billion last year.
For 2017, Stanley Black & Decker increased its earnings guidance range to $7.33-$7.43 per share from the previous projection of $7.18-$7.38 per share range. Organic revenue will likely grow by 6%.
At the time of the recommendation, Monday morning, SWK stock price was sitting at $160.07.
However, Stanley Black & Decker shares were down 1.21% ahead of the report.
But, after reporting Stanley Black & Decker Inc. kept its earnings streak alive in third-quarter 2017, pulling off a positive earnings surprise of 4.3%.
During trading Tuesday the stock price hit a high of $166.70, and settled at end of trading at $165.74; up +$7.61 or 4.81%.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 102% within a couple of days.
ACTION TO TAKE…….
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……