Earnings Season Highlights

Refresh your browser for the latest updates!
A collection of noteworthy post-earnings reactions
Published on May 19, 2022 at 2:07 PM
  • Buzz Stocks

Bath & Body Works Inc (NYSE:BBWI) stock is down 7.6% to trade at $39.64, earlier hitting a one-year low of $38.35. Though the retailer's first-quarter results beat estimates, its reduced 2022 outlook is weighing on the stock. Plus, no fewer than five analysts slashed their price targets, including Credit Suisse to $49 from $64, with the firm noting they "struggle to embrace an apparent Covid-beneficiary in a category that consumers likely over-consumed in ’20 and ’21 -- and one that’s no longer beating Street topline estimates materially quarter to quarter." 

Though the brokerage bunch steered clear of downgrades today, there is ample room for a pessimistic shift. Of the 16 analysts in coverage, 15 carry a "buy" or better rating. Plus, the 12-month consensus price target of $76.35 is still a 92.8% premium to current levels. 

Over in the options pits, puts are more than doubling calls midday, with overall options volume running at five times the intraday average. So far, 26,000 puts and 11,000 calls have been exchanged, with the May 40 put seeing the most activity.

It's also worth noting that BBWI has landed on the short sell restricted (SSR) list today.Lastly, short interest makes up 7.9% of the stock's available float, or four days' worth of pent-up buying power. 

Published on May 19, 2022 at 10:50 AM
Updated on May 19, 2022 at 10:55 AM
  • Buzz Stocks

Cisco Systems Inc (NASDAQ:CSCO) is contributing to the Dow's negative price action this morning, down 10.8% at $43.15 at last glance, after the company slashed its 2022 forecast. Earlier hitting an 18-month low of $41.36, today's gap lower has CSCO down 33% year-to-date. 

Supply shortages cut into Cisco's fiscal third-quarter results, as did the war in Ukraine and China's lockdowns, and the networking name's revenue of $12.84 billion missed estimates of $13.34 billion. Earnings of 87 cents per share did beat estimates by one cent, however. 

No fewer than 13 analysts cut their price targets after the event, with the lowest from Citigroup to $40 from $45. The ratings are still the same so far, with the 16 analysts in coverage split toward CSC -- nine carrying a "buy" or better rating, and seven a "hold" or worse.

Meanwhile, in the last two weeks, puts have been exchanged at their fastest pace all year. This is per CSCO's 10-day put/call volume ratio of 1.18 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all other readings from the past 12 months. 

This penchant for puts is still in place today, with 113,000 puts across the tape so far -- 12 times the intraday average -- in comparison to 79,000 calls. The May 40 and 42 puts are the most popular, with new positions being opened at both. It's also worth noting that Cisco stock has landed on the short sale restricted (SSR) list today.

Published on May 4, 2022 at 10:48 AM
Updated on May 18, 2022 at 4:06 PM
  • Buzz Stocks

Brinker International Inc (NYSE:EAT) stock is struggling after the company's fiscal third-quarter results, down 14.7% to trade at $33.67. Though the Burger King parent saw an increase in sales from last quarter, commodity and labor costs took their toll, and Brinker turned in lower-than-expected earnings and revenue while lowering its full-year forecast.

On the charts, EAT now carries an 8% year-to-date deficit, with several long-term moving averages lingering above -- including the 160-day trendline. However, the security appears to have found a floor at the $33 level, which has caught pullbacks in both March and April as well as today.

Meanwhile, options bulls have been blasting Brinker stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 9.28 sits higher than 98% of readings from the past year. Echoing this, EAT's Schaeffer's put/call open interest ratio (SOIR) of 0.22 is higher than just 1% of readings.

Calls are still winning out in the options pits today, with 3,230 calls exchanged so far in comparison to 869 puts. Overall, options volume is running at six times the intraday average after the earnings event, and pacing for the 99th percentile of its annual range. The July 50 call is the most popular, followed by the May 45 call, which also happens to be one of the top open interest positions. It's worth noting, however, that EAT has landed on the Short Sale Restricted (SSR) list today. 

Published on Apr 26, 2022 at 11:04 AM
  • Buzz Stocks

Soda giant PepsiCo, Inc. (NASDAQ:PEP) announced earnings of $1.29 per share on revenue of $16.20 billion ahead of the open this morning, beating analyst expectations of $1.23 per share on $15.53 billion. The company noted demand remained steady, despite several rounds of price hikes, and also raised its 2022 revenue forecast. PEP is inching higher in response, up 0.8% to trade at $175.12. 

The stock is still trading near its Jan. 21, record high of $177.24, after touching that peak earlier this month. Longer term, the 320-day moving average has provided support since March 2021, and caught last month's pullback to the $153 level. Year-to-date, PepsiCo stock is hovering just above breakeven. 

So far today, options volume is running at five times the intraday average, and pacing for the top percentile of its annual range. Bulls are winning out, with 24,000 calls traded, as opposed to 5,568 puts. The May 180 call is the most popular by far, with new positions being bought to open there. 

Analysts have yet to respond to the event, but eight of the 10 in coverage already carry a "strong buy" rating on PEP. Meanwhile, the 12-month consensus price target of $182.10 is a slim 4.6% premium to current levels, but represents never-before-seen territory for the stock. 

Published on Apr 21, 2022 at 10:28 AM
  • Buzz Stocks

Blackstone Inc (NYSE:BX) reported better-than-expected first-quarter results, with earnings soaring 63%, as its real estate and credit businesses gave profits a boost. CEO Stephen Schwarzman said this quarter "represented one of the best in Blackstone's 36-year history despite an extremely challenging market backdrop." 

Despite this, BX has erased its early morning gains and was last seen down 1% at $119.14. Earlier, however, the stock was trading as high as $126.80. BX has had a volatile past few months, trading within a wide range on the charts, and is down 7.9% year-to-date. The stock's 320-day moving average still lingers below as support, however, as it has since November of 2020. 

Call traders are targeting the investment firm after the news. So far, 11,000 calls have crossed the tape, which is four times the intraday average and roughly six times the amount of puts traded. The weekly 4/22 130-strike call is the most popular, with new positions being sold to open there. 

Options traders are in luck, too, as BX's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 91 out of a possible 100, meaning the stock has exceeded options traders' volatility expectations in the last 12 months.

Published on Apr 20, 2022 at 10:59 AM
Updated on Apr 20, 2022 at 11:04 AM
  • Buzz Stocks
The options pits, on the other hand, are brimming with activity this morning. So far, 35,000 calls have crossed the tape, or eight times the intraday average, and almost three times the 12,000 puts exchanged. The May 170 call is the most popular, followed by the 4/22 167.50-strike call, with new positions being bought to open at both. 
Published on Apr 6, 2022 at 11:06 AM
  • Buzz Stocks

U.S.-listed shares of cannabis stock Tilray Inc (NASDAQ:TLRY) are surging today, up 14.1% to trade at $8.02, after the company's fiscal third-quarter results. Tilray reported earnings of nine cents per share, outshining analysts' expected losses of eight cents per share. And though revenue of $151.87 million came in below expectations, it still represents a 22.6% year-over-year gain. Plus, the company announced a partnership with Whole Foods Markets, where it will debut two of its hemp powders exclusively this month. 

However, today's pop seems to be cut short at the 130-day moving average, a trendline of long-term pressure that also rejected the stock's November rally. TLRY is up 55.5% in just the last month, after hitting a March 15 18-month low of $4.78, but seems to be having trouble extending its rebound.

Options traders are targeting Tilray stock at triple what's typically seen at this point. In fact, options volume is pacing for the 99th percentile of its annual range. So far, 167,000 calls and 41,000 puts have crossed the tape. New positions are being opened at the most active option -- the weekly 4/8 8-strike call -- which expires at the end of this week.

There is plenty of room for upgrades, should analysts become more optimistic. Of the 14 in coverage, 10 still carry a "hold" or worse rating. Plus, the 12-month consensus price target of $8.53 is a relatively slim 9.5% premium to current levels. 

Published on Mar 3, 2022 at 10:37 AM
  • Intraday Option Activity
  • Buzz Stocks
Options volume is pacing for the top percentile of its annual range, with 54,000 calls and 56,000 puts across the tape so far -- 13 times the intraday average. The weekly 3/4 220-strike put is the most popular, followed by the 250-strike call in the same weekly series, with positions being opened at both. It's also worth noting that today's volatility has put SNOW on the Short Sale Restricted (SSR) list today. 
Published on Mar 2, 2022 at 10:22 AM
  • Buzz Stocks

Nordstrom Inc (NYSE:JWN) stock is on track for its best day ever, up 31.5% to trade at $25.68 at last glance, after the retailer's better-than-expected fourth-quarter results and strong 2022 guidance. No fewer than five analysts lifted their price targets after the event, with three raising it to $30. 

Analysts have yet to toss JWN an upgrade however, as they are still hesitant on the stock in terms of its consistency for the full year. Cowen and Company stated that it looks for steadiness in off-price channel as performance has been mixed. There is plenty of room for a shift in sentiment -- which could provide tailwinds -- as 10 of the 11 brokerages in coverage carry a "hold" or worse rating. 

It's also worth noting that short interest represents 22.1% of the stock's available float. At JWN's average pace of trading, it would take over four days to buy back these bearish bets -- plenty of pent-up buying power. 

Today's pop has Nordstrom stock at its highest level since its late November post-earnings bear gap, and further distancing itself from its Feb. 24, 14-month low of $18.65. However, the stock's 140-day moving average appears to be swooping in as overhead pressure. Year-to-date, JWN is up 14.9%. 

Unsurprisingly, options traders are targeting the security at 28 times what's typically seen at this point, with 39,000 calls and 21,000 puts across the tape so far. The March 23 and 20 calls are the most popular, with new positions being bought to open at the weekly 3/4 30-strike call. 

Published on Feb 18, 2022 at 10:48 AM
Updated on Feb 18, 2022 at 11:50 AM
  • Buzz Stocks
 
Published on Feb 17, 2022 at 12:20 PM
Updated on Feb 17, 2022 at 3:23 PM
  • Quantitative Analysis
 
Published on Feb 17, 2022 at 10:21 AM
Updated on Feb 17, 2022 at 10:32 AM
  • Buzz Stocks
Unsurprisingly, options volume is pacing for the top percentile of its annual range, with options being traded at 20 times the intraday average. 

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!

1640638248

 
Special Offers from Schaeffer's Trading Partners


MORE | MARKETstories


America’s New ‘Distortion’ Crisis
What does this mean for your money...
Why Investors Should Avoid Betting on This Casino Stock
Caesars Entertainment stock just made onto a list of 25 worst equities to own in June
Wall Street Looks for Respite as Investors Place Inflation Wagers
The major benchmarks are on track to snap weekly losing streaks
How This Infinite Income Loop Hands Me Instant Cash Every Month
How I Discovered An Infinite Income Loop in the Stock Market