Earnings Preview: Canadian Solar Inc., Fossil Group Inc, and Juno Therapeutics Inc

Canadian Solar Inc. (CSIQ), Fossil Group Inc (FOSL), and Juno Therapeutics Inc (JUNO) are slated to report earnings this week

by Alex Eppstein

Published on Nov 9, 2015 at 1:50 PM

Earnings season is winding down, but there are still a few intriguing names due to report results. Three companies heading into the earnings booth this week are alternative energy issue Canadian Solar Inc. (NASDAQ:CSIQ), fashion accessories firm Fossil Group Inc (NASDAQ:FOSL), and drugmaker Juno Therapeutics Inc (NASDAQ:JUNO). Below, we'll take the pre-earnings temperature of CSIQ, FOSL, and JUNO.

  • CSIQ is scheduled to tell all before the open tomorrow, and based on its near-term at-the-money (ATM) straddle, the market is anticipating an 11.4% post-event move. This is actually less than the 13.2% swing the stock has averaged in the aftermath of the company's past eight quarterly reports. Technically speaking, Canadian Solar Inc. is down 1.6% today at $23.20, along with the broader market, and is off about 4% on the year. However, since hitting a two-year low of $14.16 in late August, the stock has bounced by an impressive 64%. Amid this sharp uptrend, betting has grown extremely bullish at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). CSIQ's 10-day call/put volume ratio of 15.98 ranks just 1 percentage point from an annual peak, with nearly 16 calls bought to open for each put.

  • Ahead of Thursday night's earnings report for FOSL, short sellers have been very active. In fact, over one-quarter of the stock's float is sold short, and would take roughly two weeks to repurchase, at typical daily trading levels. Speaking of earnings, the market is pricing in a 12.6% post-event move, based on near-term ATM straddle data -- considerably sharper than Fossil Group Inc's average post-earnings, single-session move of 6.9%, looking at the past eight quarters. On the charts, FOSL is down 1.3% at $54.41, and has surrendered half of its value on a year-to-date basis.

  • JUNO will step up to the earnings plate tomorrow night, and this time around, a roughly 11% swing is expected in the aftermath. Looking back three quarters, the stock has typically moved a more modest 7.6% in the session after the company reports. Analysts are confident ahead of the event, with 80% doling out "strong buy" ratings, and not a single "sell" opinion on the books. Plus, Juno Therapeutics Inc's consensus 12-month price target of $62 sits in territory not charted since early June -- and represents a nearly 21% premium to its current perch. At last check, JUNO is up 2.7% at $51.30, as it tries to avoid closing below its 20-day moving average for two straight sessions for the first time since late September.

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