Schaeffer's Trading Floor Blog

Earnings on Deck: Nike Inc, Silver Wheaton Corp. (USA), and Tiffany & Co.

Previewing NKE, SLW, and TIF ahead of their upcoming earnings reports

by 3/19/2014 11:02 AM
Stocks quoted in this article:

Headed to the earnings confessional this week are athletic apparel producer Nike Inc (NYSE:NKE), commodity concern Silver Wheaton Corp. (USA) (NYSE:SLW), and upscale jewelry giant Tiffany & Co. (NYSE:TIF). Here's a quick look at these names as earnings approach.

  • Nike Inc (NYSE:NKE) will report fiscal third-quarter earnings after the close tomorrow. The firm has exceeded analysts' bottom-line estimates in seven of the last eight quarters, averaging a one-week post-earnings gain of 1%. While the stock has fared well since joining the Dow elite, there's plenty of room on the bullish bandwagon. Short interest soared 34% during the past two reporting periods, and now accounts for nearly 8.2 million NKE shares. Plus, fewer than half the covering analysts offer up "buy" or better opinions, and the consensus 12-month price target of $81.36 is just a stone's throw from the stock's current perch at $79.89. Another well-received earnings report could spark a short squeeze or a round of upbeat analyst notes for NKE.

  • Silver Wheaton Corp. (USA) (NYSE:SLW) will unveil its fourth-quarter earnings post-close tomorrow. The company has matched or topped Wall Street's per-share profit projections in five of the last eight quarters, and averaged a gain of 3.6% in the subsequent week after issuing its past two reports. SLW has outperformed the broader S&P 500 Index (SPX) by almost 27 percentage points during the past 60 sessions, and tagged a year-to-date high of $27.14 just last week. Meanwhile, options traders can place short-term bets at a relative discount, as the stock's Schaeffer's Volatility Index (SVI) of 35% sits near the bottom quarter of its annual range. At last check, SLW is 1.6% lower at $25.41.

  • Finally, Tiffany & Co. (NYSE:TIF) will release its fourth-quarter figures ahead of the bell on Friday. The company has exceeded analysts' per-share profit predictions in each of the past four quarters, and gained 9.2% the week after its last report. Nevertheless, options speculators are picking up puts, relative to calls, at an accelerated clip. The stock's 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) rests at 1.59, just 13 percentage points from an annual high. Speaking of annual highs, TIF peaked at $94.88 -- a new record for the shares -- earlier this month, but has since pulled back to the $92.92 region. Against this backdrop, TIF shareholders could be picking up long puts to insure their positions against a post-earnings dip. Off the charts, Tiffany today named Ralph Nicoletti its new CFO, as 30-year veteran James Fernandez will retire in July.


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