Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Jul 27, 2021 at 9:41 AM
  • Buzz Stocks
 
Published on Jul 26, 2021 at 2:35 PM
Updated on Jul 26, 2021 at 4:51 PM
  • Quantitative Analysis
A look back at UMC's past eight earnings reports shows a mixed history of next-day responses, though its past three reports have been negative, including a 7% drop this January.
Published on Jul 26, 2021 at 9:16 AM
  • Buzz Stocks
 Check Point Software Technologies Inc (NASDAQ:CHKP) announced an upbeat quarterly report this morning, with second-quarter earnings of $1.61 per share -- higher than Wall Street's anticipated $1.56 -- as well as better-than-expected revenue.
Published on Jul 21, 2021 at 3:27 PM
Updated on Jul 23, 2021 at 1:57 PM
  • Earnings Preview
Options traders are kicking into high gear ahead of the event. So far, 2,394 calls and 2,974 puts have crossed the tape -- double the intraday amount. The most popular contract is  the 7/23 190-strike put, followed by the 210-strike put in the same monthly series, with positions being opened at the former. 
Published on Jul 21, 2021 at 10:38 AM
Updated on Jul 23, 2021 at 10:32 AM
  • Buzz Stocks

Chipotle Mexican Grill, Inc. (NYSE:CMG) is in rally mode this morning, up 5.2% at $1,658, following the firm's second-quarter earnings report. Chipotle's profits of $7.46 per share on $1.89 billion in revenue handily topped expectations. CMG also lifted its comparable sales growth forecast, which also topped estimates, as customers begin to return to restaurants.

Analysts are paying attention to CMG's blowout earnings report. Already, 14 members of the brokerage bunch have lifted their price targets on Chipotle stock, including RBC Capital Markets. The analyst lifted its price estimate to $1,825 from $1,800, adding that it sees margin expansion for Chipotle via possible price increases, seeing as few balked at the restaurants recent raise in menu prices

Chipotle stock jumped to a fresh record high right out of the gate, toppling the $1,622 level, which sits near CMG's recent record highs, hit earlier in the month. Though the shares suffered a sharp pullback from the area, Chipotle's stock dip was mostly contained by the 20-day moving average. 

Considering CMG's impressive price action, more analyst upgrades could be on the horizon. Of the 23 covering the security, six still say "hold." Plus, The 12-month consensus price target of $1,849.68 is a slim 8.4% premium to current levels. 

Options traders are also swarming the stock. So far, 17,000 calls and 7,988 puts have crossed the tape -- 10 times the intraday average. The most popular is the 7/23 1,750-strike call, followed by the 1,800-strike call in the same series, with positions being opened at both. 

 

Published on Jul 21, 2021 at 11:13 AM
Updated on Jul 23, 2021 at 10:30 AM
  • Buzz Stocks
 Elsewhere, the stock is seeing a flurry of activity in the options pits. So far today, 47,000 calls and 17,000 puts have crossed the tape -- four times the intraday average. Most popular is the weekly 7/23 57.50-strike call, where new positions are being opened. 
Published on Jul 20, 2021 at 10:11 AM
Updated on Jul 23, 2021 at 10:27 AM
  • Buzz Stocks
So far today, 5,937 calls have crossed the tape, which is double what is typically seen at this points. Most popular is the August 20 call, followed by the 7/23 19.50-strike call, with new positions being opened at the former, while the latter is set to expire at the end of the week.
Published on Jul 19, 2021 at 10:48 AM
Updated on Jul 23, 2021 at 10:23 AM
  • Buzz Stocks
 
Published on Jul 22, 2021 at 3:26 PM
  • Earnings Preview

The shares of blue-chip payments name American Express Company (NYSE:AXP) are down 1.8% at $169.49 at last check. This negative price action comes just ahead of the company's second-quarter earnings report, which is due out before the open tomorrow, July 23.

AXP's options pits are somewhat muted ahead of the event, with volume running just over the intraday average. Options traders have been picking up long calls at a quicker-than-usual pace, though. In fact, the security sports a 50-day call/put volume ratio of 1.67 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 79% of readings from the past year. 

Echoing this, American Express stock's Schaeffer's put/call open interest ratio (SOIR) of 0.83 stands higher than only 6% of readings during the past 12 months. This suggests short-term options traders have rarely been more call biased. 

Options traders are pricing in a 3.8% post-earnings swing for AXP this time around, which is slightly larger than the 2.4% move the stock averaged after its last eight reports, regardless of direction. The equity has had a history of mostly negative next-day returns, which could be contributing to today's pullback, save for two back-to-back post-earnings pops in 2020.

The brokerage bunch, meanwhile, is split, with eight analysts saying "strong buy," and eight saying "hold" or worse. Should this pre-earnings pullback be just a flash in the pan, there could be room for analyst upgrades. Plus, several trendlines still sit as potential support just below, including the stock's 50-day moving average, which has contained several pullbacks this year. 

AXP July 22

Published on Jul 15, 2021 at 10:39 AM
  • Intraday Option Activity
  • Buzz Stocks
The options pits are exploding with activity following the event.  At last check, 15,000 calls and 12,000 puts have crossed the tape, which is double the amount typically seen at this point. Most popular is the July 93 call, followed by the 90 call from the same series.
Published on Jul 13, 2021 at 9:49 AM
  • Buzz Stocks
PepsiCo, Inc. (NASDAQ:PEP) reported first-quarter earnings of $1.21 per share -- slightly higher than the $1.12 per share anticipated by analysts -- on revenue that was also just above estimates.
Published on Jun 25, 2021 at 11:17 AM
Updated on Jun 25, 2021 at 11:32 AM
  • Buzz Stocks
 

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