Earnings Preview: Etsy Inc, Whole Foods Market, Inc., and FireEye Inc

Looking in at Etsy Inc (NASDAQ:ETSY), Whole Foods Market, Inc. (NASDAQ:WFM), and FireEye Inc (NASDAQ:FEYE) ahead of earnings

Nov 3, 2015 at 11:41 AM
facebook twitter linkedin


A busy week on Wall Street rages on. Three notable names preparing to report earnings are online marketplace Etsy Inc (NASDAQ:ETSY), organic grocer Whole Foods Market, Inc. (NASDAQ:WFM), and cybersecurity firm FireEye Inc (NASDAQ:FEYE). Below, we'll take a pre-earnings look at ETSY, WFM, and FEYE, to see how the Street is preparing for the events. 

  • Tonight will mark only the third trip to the earnings confessional for ETSY, and shareholders are really hoping for a different showing this time around. In the sessions following the stock's previous two earnings reports, the shares have tumbled 18.1% and 28.3%. Judging by the security's near-term at-the-money (ATM) straddle data, traders are anticipating another major move of 20.1% in either direction. Call buying has been prevalent leading up to the event, with Etsy Inc sporting a 10-day call/put volume ratio of 2.12 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). At last check, ETSY was 1.2% higher at $10.82, which is a change of pace for the shares. The stock has underperformed the S&P 500 Index (SPX) by more than 30 percentage points in the past two months. 

  • WFM is also hoping its trip to the earnings confessional tomorrow night goes differently than its last two, which pushed the shares 9.7% and 11.6% lower in the subsequent sessions. The options market is pricing in a 9.7% swing this time around, and it appears speculators are betting on this move to go to the downside. Whole Foods Market, Inc.'s 10-day ISE/CBOE/PHLX put/call volume ratio of 1.35 sits higher than 94% of all readings from the past year. In other words, put buying has outweighed call buying at an unusually fast pace. The shares certainly could use a lift. The stock was 38.7% lower in 2015 coming into today, and was last seen at $31.08. Amid this free fall, analysts have been trimming their expectations, and Deutsche Bank and SunTrust Robinson just cut their price targets on the stock by $5 to $30 and $40, respectively. 

  • Finally, FEYE is surging ahead of its quarterly event tomorrow night, picking up 5.1% at $28.94. The stock's near-term ATM straddle is pricing in an 11.7% post-earnings swing, outstripping the shares' average post-event move of 9.6% over the past eight quarters. If FireEye Inc jumps after earnings, it could benefit from a round of analyst upgrades. Currently, half of the brokerage firms covering FEYE say it's only a "hold." 
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1