Earnings Preview: Barrick Gold Corporation, MGM Resorts International, and Nordstrom, Inc.

Barrick Gold Corporation (USA) (NYSE:ABX), MGM Resorts International (NYSE:MGM), and Nordstrom, Inc. (NYSE:JWN) are on tap to report earnings

Feb 17, 2016 at 1:48 PM
facebook X logo linkedin


Although earnings season is winding down, there are still a number of notable names waiting to unveil their quarterly earnings reports. Tonight, for instance, gold miner Barrick Gold Corporation (USA) (NYSE:ABX) will offer up its latest numbers. Tomorrow, meanwhile, casino operator MGM Resorts International (NYSE:MGM) will report in the morning, while retailer Nordstrom, Inc. (NYSE:JWN) will report after the close. Below, we'll take a pre-earnings look at ABX, MGM, and JWN.

  • While ABX has been basking in love from the analyst community recently, the sentiment among the options crowd is entirely different. In fact, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.84 is in the 81st annual percentile, meaning short-term speculators are more put-heavy than usual. If past is precedent, these option bears could be jumping ship tomorrow. Over the past eight quarters, ABX has averaged a single-session post-earnings move of 3.6% -- with the majority of the action occurring to the upside. In fact, Barrick Gold Corporation has been on a tear lately, adding more than 71% since skimming the $7 level in mid-December. Today, the shares are up 2.8% at $11.91, as gold moves higher ahead of the release of the minutes from the latest Federal Open Market Committee (FOMC) meeting.

  • MGM is up 4.3% at $19.98 this afternoon, despite recent reports that both Paulson & Co. and Omega Advisors, Inc. lowered their stakes in the firm. The stock has been rebounding since bottoming at a two-year low of $16.18 on Feb. 9, set to end atop its 30-day trendline for the first time since Jan. 6. Today, calls are crossing at three times the average intraday pace, with 22,850 contracts on the tape at last check. It appears a number of speculators are hoping that MGM Resorts International has a post-earnings breakout -- though much bigger than that of fellow casino concern Boyd Gaming Corporation (NYSE:BYD) -- buying to open the weekly 2/26 20-strike call. Historically speaking, MGM has averaged a single-session post-earnings move of 3.5% over the past eight quarters. This time around, though, the options market is projecting a bigger 10.2% swing.

  • UBS weighed in on a number of names today, and for JWN, this resulted in a price-target cut to $58 from $63. Nevertheless, the stock is up 3.1% at $52.45 -- and is on pace to close north of $52 for the first time since Dec. 16. While call volume has exploded to eight times the average intraday rate this afternoon, it appears speculators targeting JWN's out-of-the-money February 55 call may be hoping for a post-earnings volatility crush -- and limited upside momentum -- by selling these calls to open.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI