Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Jun 5, 2020 at 11:44 AM
Updated on Jun 5, 2020 at 3:35 PM
  • Buzz Stocks
The shares of Gap Inc. (NYSE: GPS) are up 1.7% at $12.01 this morning, modestly higher despite the retail company reporting a steeper-than-expected first-quarter loss, as well as revenue that came in lower-than-anticipated.
Published on Jun 5, 2020 at 2:41 PM
  • Earnings Preview
SFIX is pacing for a five-day win streak, though pressure at its year-to-date breakeven level is keeping this rally in check.
Published on Jun 5, 2020 at 10:12 AM
Updated on Jun 5, 2020 at 10:27 AM
  • Buzz Stocks
DocuSign Inc (NASDAQ:DOCU) entered the earnings confessional this morning, reporting first-quarter profits and revenue that came in higher than analysts' estimates.
Published on Jun 5, 2020 at 9:44 AM
  • Buzz Stocks

The shares of Zumiez Inc (NASDAQ:ZUMZ) are off 4.1% to trade at $28 this morning, following the apparel retailer's first-quarter report. Zumiez posted losses of 84 cents per share and $137.77 million in revenue, missing analysts' estimates. The firm declined to provide a current-quarter forecast at this time, but added that its same-store sales for locations it opened in May, along with its e-commerce traffic increased by 79.6%. 

Despite the miss, Jefferies and D.A. Davidson lifted their price targets to $35 and $28, respectively. Coming into today, the consensus 12-month price target sat at $31.33, which is a 7.3% premium to last night's close. Meanwhile, all three of the analysts in coverage consider ZUMZ a "hold." 

Options players have taken a more optimistic approach to Zumiez stock, with 5.36 calls picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) in the last 10 weeks. This ratio sits in the 96th percentile of its annual range, suggesting a healthier-than-usual appetite for bearish bets of late. 

On the charts, ZUMZ just notched its fourth-straight win yesterday, rallying atop the 180-day moving average for the first time since February 25. The security is testing the stability of this trendline today. And while it boasts a roughly 65% win for the quarter, ZUMZ is still down over 15% for the year. 

 

Published on Jun 4, 2020 at 2:40 PM
Updated on Jun 4, 2020 at 4:24 PM
  • Buzz Stocks
  • Intraday Option Activity
Technology company Ciena Corporation (NYSE:CIEN) entered the earnings confessional this morning, reporting second-quarter profits and revenue that came in higher than analysts' estimates.
Published on Jun 4, 2020 at 10:38 AM
  • Buzz Stocks
Technology company Ciena Corporation (NYSE:CIEN) entered the earnings confessional this morning, reporting second-quarter profits and revenue that came in higher than analysts' estimates.
Published on Jun 3, 2020 at 10:21 AM
  • Buzz Stocks
  • Intraday Option Activity
Food producer Campbell Soup Company (NYSE:CPB) entered the earnings confessional this morning, reporting third-quarter profits and revenue that came in higher than analysts' estimates.
Published on Jun 3, 2020 at 9:55 AM
  • Buzz Stocks
  • Analyst Update
The company nearly doubled its annual sales forecast, too, blowing Wall Street's estimates out of the water, though it did warn that its gross margins would likely stay below historical norms, adding that its costs were rising sharply. 
Published on May 28, 2020 at 10:27 AM
Updated on Jun 2, 2020 at 5:23 PM
  • Analyst Update

HP Inc (NYSE:HPQ) is off 7.8% at $15.79 after last night's fiscal second-quarter earnings report. The tech company posted earnings that beat analysts' estimates, but revenue that missed the mark. HP's current-quarter forecast also came in below expectations, while it withdrew its 2020 outlook amid coronavirus-related uncertainties. 

The event definitely drew some analyst chatter. No fewer than three brokerages lowered their price targets, including J.P. Morgan Securities to $20 from $21. The analyst also lowered its rating on HPQ to "neutral" from "overweight." One outlier, Deutsche Bank, lifted its price target by $1 to $18. 

This puts the consensus 12-month price target at $17.69, which is a 16.2% premium to current levels. Coming into today, just four analysts considered HPQ a "strong buy," compared to nine that called it a "hold" or worse. 

It has been a struggle for HPQ on the charts. The security has tried to distance itself from its March lows, but found resistance at the $18 level late in the month. Since then, the stock's sideways trading has been mostly contained by the $14 and $16 regions, with a recent breakout above here thwarted by the 80-day moving average. 

Already, options are flying off the shelves. In the first hour of trading, 19,000 calls and 9,534 puts have exchanged hands -- four times what is typically seen at this point. The weekly 5/29 15.50-strike call is the most popular, with positions being opened here, while the most popular put is the June 15 contract. 

Typically, bulls rule the roost, per HPQ's 10-day call/put volume ratio of 11.73 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 95th percentile of its annual range. This means long calls have been picked up at a much quicker-than-usual clip in the last two weeks. 

Short interest sellers, meanwhile, are jumping back on the bearish bandwagon, with short interest up 5.3% in the last two reporting periods. There's still plenty of room for these bears. The 18.85 million shares sold short represent just 1.3% of HPQ's available float. However, it should be noted that HP has landed itself on the short-sale restricted (SSR) list today.

 

 

 

Published on May 28, 2020 at 10:51 AM
Updated on Jun 2, 2020 at 5:20 PM
  • Buzz Stocks
  • Analyst Update
The earnings beat inspired no fewer than 11 analysts to raise their price targets, including Mizuho to $220, with one price-target cut coming from Wedbush to $196.
Published on May 29, 2020 at 10:53 AM
Updated on Jun 2, 2020 at 5:19 PM
  • Buzz Stocks
  • Analyst Update
The earnings and revenue beat inspired no fewer than six analysts to raise their price targets, including Deutsche Bank and Instinet to $55. 
Published on Jun 2, 2020 at 2:14 PM
  • Buzz Stocks
  • Intraday Option Activity

The shares of Planet Fitness Inc (NYSE:PLNT) are soaring today, up 7.6% at $72.66 at last check, after the fitness center franchise reported about 60% of its customers returned amid the reopening of around 800 gyms across the U.S. and Canada in the last week. Furthermore, the company also reported that memberships remain stable in gyms that are open, a fact that Jefferies sees as helping the stock recover to its pre-COVID-19 levels. 

On the charts, PLNT has recovered significantly since the equity hit a near three-year low of $23.77 during the broader market's mid-March pullback. Now up over 200% since that time, Planet Fitness stock boasts an impressive 48.6% quarterly gain despite coronavirus-related lockdowns keeping gyms closed for much of the last three months.  Today's rally has the shares reclaiming their 320-day moving average, a trendline that has kept a lit on breakouts since the beginning of March.

PLNT Chart June 2

Currently, analysts are extremely bullish on the equity. Of the 15 in coverage, 12 sport a "buy" or better, with zero "sells" on the books. However, the 12-month consensus price target of $68.23 is a conservative 5.8% discount to current levels, and could signal some price-target hikes in the near future that could act as additional tailwinds.

The equity is also ripe for a short squeeze. Short interest is up 35.8% in the last two reporting periods, to 9.48 million shares now sold short. This represents a healthy 11.9% of the stock's available float, and would take almost three days to cover, at its average daily pace of trading. 

In the options pits today, 6,810 calls and 1,942 puts have changed hands so far -- nearly double the average intraday amount, with volume running in the 98th percentile of its annual range. Leading the charge is the August 67.5 call, followed closely by the 72.5-strike call from the same series.


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