Earnings Season Highlights

Refresh your browser for the latest updates!
A collection of noteworthy post-earnings reactions
Published on Apr 12, 2018 at 9:58 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Delta Air Lines, Inc. (NYSE:DAL) stock is up 2.7% to trade at $52.90, after the airline company reported first-quarter earnings and revenue that surpassed analyst expectations. It was also Delta's third straight quarter with higher average fares and passenger traffic, with Delta President Glen Hauenstein touting the firm's "best revenue momentum since 2014."

Delta stock is currently on track to snap a four-day skid. The equity has struggled since touching a record high of $60.79 on Jan. 16, shedding 13% in the subsequent weeks, but found support atop its 320-day moving average. The news today has the shares trading back above their 200-day moving average, too. However, DAL is still lower so far in the historically tough second quarter

Analysts have remained overwhelmingly bullish on the airliner, even amid the stock's recent struggles. All 13 of the brokerages covering DAL rate it a "buy" or "strong buy." There aren't many short sellers to be found, either. Short interest fell in the most recent reporting period, and only represents 2.8% of the stock's total available float. 

In the options pits, calls have continued to dominate. DAL sports a 50-day call/put volume ratio of 2.96 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Not only does this indicate calls have nearly tripled puts in the past 10 weeks, but this reading ranks in the high 87th annual percentile, meaning call buying has been unusually popular in recent weeks, relative to put buying.

Published on Apr 12, 2018 at 10:04 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks
  • Analyst Update

Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) have plunged 16% to trade at $18.05 -- hitting a nine-year low of $17.85 out of the gate -- after the homegoods retailer offered up a weak full-quarter profit forecast. After reporting fiscal fourth-quarter adjusted earnings beat of $1.48 per share on inline revenue of $3.7 billion, BBBY said it expects 2018 earnings to arrive in the low-to-mid $2 range, versus the consensus estimate for adjusted per-share profit of $2.76.

Analysts were quick to chime in on the retail stock after earnings, too. No fewer than eight brokerage firms cut their BBBY price targets, with Citigroup and KeyBanc setting the lowest bar at $16 -- representing additional downside of nearly 12% to the stock's current price, and a level not breached since June 2000.

Nevertheless, the stock has been trending lower for the past three years, down nearly 77% from its January 2015 highs just below $80 amid steady pressure from its 10-month moving average. More recently, BBBY's 120-day trendline has contained all rally attempts since last December.

Bearish options traders are certainly profiting from Bed Bath & Beyond's negative earnings reaction. Looking at the weekly 4/13 21-strike put -- home to peak open interest in that short-term series -- which saw significant buy-to-open activity on March 29 and April 11. The closing prices for the put were $1.19 and $0.96, respectively, and at last check, the bid price for the weekly put was $3.30.

Published on Apr 12, 2018 at 10:19 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Puma Biotechnology Inc (NASDAQ:PBYI) exploded up the charts in 2017, more than tripling in value and peaking at $136.90 in early November. Since then, however, PBYI stock has suffered two bear gaps, the most recent of which from January came as a result of an unfavorable regulatory decision out of Europe.

The shares are under pressure again today after Barclays downgraded its opinion to "equal weight" from "overweight." The brokerage firm believes the main value drivers for the equity are already priced in, and it lowered its price target to $70 from $90 -- the lowest target on Wall Street, according to Thomson Reuters Eikon.

What makes this bear note even more notable is that fact that most covering analysts are extremely bullish. Coming into today, there were six brokerage firms with coverage on Puma Biotechnology, and five of them had "strong buy" ratings in place. Moreover, the average 12-month price target is $96, which is a 51.3% premium to PBYI's current perch.

At last check, the shares were trading down 3.7% at $63.68. They've been hampered by resistance from the 50-day moving average ever since the first bear gap back in November, but the $60 mark has seemingly stepped up as support since the January gap. The security bottomed at $60.10 earlier today.

As for options activity, volume has been light on an absolute basis, but recent data shows a strong tilt toward long calls. Specifically, PBYI has a 10-day call/put volume ratio of 8.81 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). And even with the stock sharply lower, many are speculating on a rebound, with buy-to-open activity already spotted today at the June 90 call.

 

Published on Apr 12, 2018 at 12:56 PM
Updated on Mar 19, 2021 at 7:15 AM
  • The Week Ahead

Earnings season ramps up next week, with several blue-chip names ready to step up to the plate. Johnson & Johnson (JNJ), UnitedHealth (UNH), and General Electric (GE) are some notable Dow companies that will report next week, along with bank names Goldman Sachs (GS) and Bank of America (BAC). Streaming giant Netflix (NFLX) will be the first FAANG member to report as well. A host of Fed speakers are also sprinkled into the week, including John Williams, who will replace William Dudley later this year as the next New York Fed President.

Below is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.

On Monday, April 16, retail sales, business inventories, Treasury International Capital data, and the Empire State manufacturing survey will kick off the week. Atlanta Fed President Raphael Bostic will also speak in the afternoon. Bank of America (BAC), Netflix (NFLX), Charles Schwab (SCHW), and J.B. Hunt (JBHT) will report earnings.

Housing starts and industrial production data will be released on Tuesday, April 17. Future New York Fed President John Williams and Chicago Fed President Charles Evans will speak, while Fed Vice Chair for Supervision Governor Randal Quarles will give his semi-annual testimony before the House Financial Services Committee. Goldman Sachs (GS), IBM (IBM), Johnson & Johnson (JNJ), UnitedHealth (UNH), Comerica (CMA), CSX Corp (CSX), Intuitive Surgical (ISRG), Lam Research (LRCX), Progressive (PGR), and United Continental (UAL) will step into the earnings confessional.

Wednesday, April 18, brings the weekly crude inventories update and the Fed's Beige Book. Current New York Fed President William Dudley will speak. American Express (AXP), Abbot Laboratories (ABT), Alcoa (AA), Mattel (MAT), Morgan Stanley (MS), Pier 1 Imports (PIR), Skechers (SKX), Steel Dynamics (STLD), United Rentals (URI), and U.S. Bancorp (USB) will unveil earnings.

Weekly jobless claims, the Philadelphia Fed business outlook, the Fed's balance sheet, and the Conference Board's index of leading economic indicators are due out on Thursday, April 19. Cleveland Fed President Loretta Mester will speak in the evening. BB&T Corp (BBT), Blackstone Group (BX), E*TRADE Financial (ETFC), KeyCorp (KEY), Nucor (NUE), Philip Morris International (PM), and The Tile Shop (TTS) will report earnings.

On Friday, April 20, Evans will speak again. Earnings from General Electric (GE), Procter & Gamble (PG), Cleveland-Cliffs (CLF), Gentex (GNTX), Honeywell (HON), Kansas City Southern (KSU), Schlumberger (SLB), TransUnion (TRU), and Waste Management (WM) will close out the week.

Published on Apr 12, 2018 at 2:59 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

It's another volatile day of trading on Wall Street, though today's price action is to the upside. Among individual stocks making notable moves are Bath & Body Works parent L Brands Inc (NYSE:LB), internet advertising firm QuinStreet Inc (NASDAQ:QNST), and billing and analytics software specialist Zuora (NYSE:ZUO). Here's a quick look at what's moving shares of LB, QNST, and ZUO.

L Brands Stock Spirals as PINK Sales Decline

L Brands stock has plunged 5.3% to trade at $35.91 -- its session lows -- after the retailer said declining growth for its Victoria's Secret PINK brand pressured March same-store sales. What's more, Loop Capital cut its LB price target to $40 from $42, saying "Victoria's Secret size, price range, and aesthetic are out of line with new consumer options," while Deutsche Bank lowered its target price to $53 from $60.

Since topping out at an annual high of $63.10 in late December, shares of LB are down 43%. The stock has now breached recent support near $37, and put buyers are cashing out. Nearly 11,000 LB puts have changed hands so far today -- roughly triple the expected intraday amount -- with sell-to-close activity detected at the weekly 4/13 and April 37.50 strikes.

QuinStreet Stock Bounces from Short Seller Sell-Off

QuinStreet shares plunged 17.7% yesterday to close below its 80-day moving average for the first time since August, after Kerrisdale Capital shorted the stock, saying the company is a "low-quality organization with a fundamentally flawed business model." Today, QNST stock has surged back above this trendline -- last seen up 17.2% to trade at $11.88 -- after the ad firm called Kerrisdale's claims "inaccurate," and released upbeat preliminary fiscal third-quarter revenue numbers.

Longer-term, the security is up more than 40% in 2018 -- and topped out at a six-year high of $14.65 on March 27. This notable milestone came amid heavy selling pressure, too, with short interest up 318% in the two most recent reporting periods to 2.82 million shares, the most since late 2012.

Zuora Stock Soars in Public Trading Debut

Last night, Zuora priced its initial public offering (IPO) at $14 per share -- above previous expectations for range of $11 to $13 per share -- which valued the cloud company at roughly $1.4 billion. The shares opened today at $20, rising as high as $21.60, and falling as low as $19.12. At last check, ZUO stock was up 54% at $21.56.
Published on Apr 12, 2018 at 3:06 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stock Market News
  • Buzz Stocks

As part of its plan to keep up with streaming powerhouse Netflix (NFLX), Walt Disney Co (NYSE:DIS) today launched ESPN+. The digital streaming product costs $4.99 a month or $49.99 per year, and comes out more than a year before the company's Disney streaming service is set to hit. But while NFLX shares have soared in recent years, DIS stock has lagged. Most recently, it was stuck just below the $100 level, down 0.8% on the day.

Taking a broader view, Disney has struggled after a strong rally from late 2011 to mid-2015. In fact, the security's 48-month, or four-year, moving average has caught up with it. DIS is now on pace to close below this long-term trendline for the second straight month. Many on Wall Street believe this lackluster technical performance is going to continue.

Specifically, short interest has been soaring on Disney, with the number of shorted shares rising from 14.4 million back in mid-July, to 30.71 million today. While that's a dramatic jump, short interest still represents just 2.1% of DIS' total float. This suggests there's plenty of room for more short sellers to move in, which could add to the selling pressure.

The blue chip still has its backers, however. In fact, half the brokerage firms tracking the shares say they're a "buy" or "strong buy." And the average 12-month price target of $119.95 is a nearly 20% premium to current levels, and sits in territory not seen since 2015.

Of course, Walt Disney has done more than jump into digital streaming to grow its business. Back in December, it struck a $52.4 billion deal with Twenty-First Century Fox (FOXA) to acquire its film and TV businesses. This blockbuster agreement is back in focus today, after British regulators ruled the company must make an offer to buy Sky, U.K.-based telecommunications company, if the latter company is not taken over by Fox.

Published on Apr 13, 2018 at 9:41 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks
  • Analyst Update

Shares of streaming concern Netflix, Inc. (NASDAQ:NFLX) are moving higher, after Deutsche Bank upgraded the stock to "buy" from "hold," and hiked its price target to $350 from $240. The brokerage firm said Netflix has "changed the industry in a profound way," and expects it to have 217 million international subscribers by 2025.

This continues a recent wave of positive analyst attention directed toward the FAANG stock, and comes ahead of Netflix's first-quarter earnings report, due after Monday's close. In fact, Wells Fargo also raised its NFLX price target this morning to $345 from $285, while Buckingham Research boosted its target price by $20 to $277.

Netflix stock was up 1.9% at $314.99 at last check, pacing for its eighth daily win in nine sessions. Plus, the shares are on track to snap their four-week losing streak. Plus, this upside has the equity back above its 30-day moving average for the first time since late March. Longer term, NFLX has picked up 115% over the past 12 months, and touched a record high of $333.98 on March 12. 

Not surprisingly, options traders have been heavily bullish on NFLX ahead of earnings, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing a 10-day call/put volume ratio of 1.94, ranking in the 100th annual range. This extreme preference of calls over puts suggests the former has been bought at a much faster-than-usual clip during the past two weeks.

Regardless of whether it's calls or puts that Netflix options traders are purchasing, the streaming name has handily rewarded premium buyers over the past year. NFLX currently sports a Schaeffer's Volatility Scorecard (SVS) of 87 out of 100, meaning the stock has tended to exceed options traders' volatility expectations in the last 12 months.

Published on Apr 13, 2018 at 9:56 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update
  • Analyst Upgrades

NetApp Inc. (NASDAQ:NTAP) stock is hitting fresh highs again, after J.P. Morgan Securities initiated coverage with an "overweight" rating and price target of $80. The analyst in coverage likes NetApp's strong balance sheet and the newfound focus on software. This comes after Maxim yesterday chimed in with a price-target hike of its own, to $81 from $70.

The bullish attention is nothing new for NetApp, which garnered broad praise from Wall Street after last week's analyst day. Up 0.5% at $67.91 today and just off another 17-year high of $68.79, NTAP is currently on track for its ninth straight win, and its best weekly gain since November 2017. The shares have carved out a path of higher highs since early February, with pullbacks contained by their rising 80-day moving average. Overall, the stock has gained over 73% in the last 12 months. 

Despite the flurry of bullish analyst attention lately, many are still on fence. Of the 24 brokerages covering the equity, 12 rate it a "hold" or "strong sell." Furthermore, the stock's average 12-month price target of $70.30 sits only slightly higher than the stock's current perch. Additional upgrades and/or price-target hikes could provide more tailwinds for the security.

In the options pits, calls are all the rage lately. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 5.32, in the 75th percentile of its annual range.

Options traders who believe the shares will keep climbing can pick up near-term contracts at a relative discount. The security's Schaeffer's Volatility Index (SVI) of 29% is in the 19th percentile of its annual range, suggesting near-term options are attractively priced, from a volatility perspective. Further, NetApp sports a Schaeffer's Volatility Scorecard (SVS) of 89 (out of 100), indicating the shares have handily exceeded option traders' volatility expectations in the past year.

Published on Apr 13, 2018 at 10:22 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

It was a strong start to the year for Humira maker AbbVie Inc (NYSE:ABBV), with the shares rallying to a record high of $125.84 back on Jan. 26 thanks to a strong earnings report and outlook. But disappointing news surrounding the drugmaker's Rova-T treatment a few weeks back resulted in a massive bear gap, ultimately sending ABBV below the $90 for the first time since October. Analysts at Jefferies are remaining bullish on the stock, however, naming it their top pharma pick heading into first-quarter earnings season based on the attractive entry point.

From a technical perspective, it certainly wouldn't be surprising to see AbbVie stock bounce from current levels. The shares have been consolidating near the closely watched 200-day moving average in recent weeks, and their 2018 low from April 3 comes in just above the $88 mark. This region is home to a 61.8% Fibonacci retracement of the security's 52-week low to its 52-week high. At last check, the shares were trading flat at $92.12.

abbv stock today

Meanwhile, data suggests options traders have remained bullish, too. Call buying more than doubled put buying during the past 10 days across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), and calls accounted for the nine largest increases in open interest during that time.

Most popular by a long shot was the April 95 call -- but data actually shows mostly sell-to-open activity at this strike. The May 87.50 and 95 calls were also popular during the past two weeks, as was the June 105 call. This latter option saw a mix of buy- and sell-to-open activity, so some are expecting the drug stock to rally above $105 in the coming weeks, while others see this level as a short-term ceiling.

Historically, ABBV has rewarded premium buyers. This is based on its Schaffer's Volatility Scorecard (SVS) of 87, showing a tendency to make bigger moves than the options market was expecting.

Published on Apr 13, 2018 at 10:31 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Shares of Tesla Inc (NASDAQ:TSLA) are trading up 1.8% at $299.29, after CEO Elon Musk replied to a report in The Economist criticizing the electric car company's cash flow. Specifically, in response to an article entitled "Tesla is heading for a cash crunch," Musk tweeted, "Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money."

This is the second time this month Tesla has attempted to ease liquidity concerns. And since bottoming at an annual low of $244.59 on April 2, TSLA stock has bounced nearly 22%. Nevertheless, the shares are running out of steam near the round $300 mark -- a 50% Fibonacci retracement of their late-February to early April decline -- and are on track for their sixth weekly loss in seven.

Options traders have been bracing for more downside, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TSLA's 10-day put/call volume ratio of 1.12 ranks in the 100th annual percentile -- meaning puts have been bought to open over calls at a faster-than-usual clip.

It's been more expensive than usual to purchase premium on short-term bearish bets, too. TSLA's 30-day implied volatility skew of 21.7% ranks in the 95th annual percentile, indicating call options are pricing in lower volatility expectations than their put counterparts at the moment.

Published on Apr 13, 2018 at 1:53 PM
Updated on Mar 19, 2021 at 7:15 AM
  • 5-Minute Market Rundown

It was another week of volatile daily swings, as Wall Street kept a close eye on President Donald Trump's Twitter feed. While easing tensions surrounding a potential U.S.-China trade war fueled big intraday upside moves on Monday and Tuesday, Trump's taunts toward Russia of a possible Syrian missile strike sparked a sharp sell-off on Wednesday -- while boosting gold futures, oil prices, and energy stocks. The president sought to soothe nerves with a more ambiguous tweet on Thursday, sending markets higher. And while last week's intraday swings resulted in little net movement for the broader stock market, all three major indexes are headed toward tonight's close boasting substantial week-to-date gains.

FAANG Stock News This Week

FAANG stocks continued to be in focus, too, with Facebook (FB) shares logging their best day in years -- and lifting rival Snap (SNAP) stock along the way -- as the social media giant's CEO Mark Zuckerberg testified in front of Congress following the recent data harvesting scandal. Netflix (NFLX) also rallied, with the streaming name receiving bull note upon bull note ahead of next week's earnings report -- and Deutsche Bank screaming "buy" the high-flying stock on Friday.

Meanwhile, Trump issued an executive order requesting a review of the United States Postal Service (USPS), after the president accused Amazon (AMZN) of losing USPS money, and Barron's called Google parent Alphabet (GOOGL) a "bargain in big tech." Rounding things out, Apple (AAPL) was ordered to pay VirnetX (VHC) a massive patent infringement settlement -- putting the latter stock on track for its best week since late February.

Morgan Stanley Pegs Buying Opportunity in Chip Sector

Elsewhere in the tech sector, Advanced Micro Devices (AMD) stock brushed off a bearish brokerage note early on to head toward its strongest weekly return since the start of the year, while sector peer Nvidia (NVDA) jumped after Morgan Stanley called the security's recent pullback a buying opportunity. Seagate Technology (STX) and Twilio (TWLO) also jumped on positive analyst attention, while this screen specialist may have formed a tradable bottom. Plus, Tesla (TSLA) stock rallied into key technical resistance on Friday, following an overnight tweet from the firm's CEO Elon Musk.

Keytruda Data Fuels Big Upside Move for Merck Stock

Drug data also helped fuel big moves for pharma stocks, with Merck (MRK) shares pacing for their best week since November 2016 on positive results for the company's Keytruda cancer treatment. CymaBay Therapeutics (CYBA) stock had its best session since last summer after the biotech's impressive liver disease drug data. Menlo Therapeutics (MNLO), on the other hand, plummeted to a new record low after the biotech's cough drug failed to meet its mid-stage study goals.

Stocks Flashing "Buy"

While this rare options signal not seen since the 2016 U.S. presidential election has historically been bullish for the S&P in the short term, an unusual drop in this sentiment survey has not. Despite the opposing indicators, Schaeffer's Senior Quantitative Analyst Rocky White found these to be the hottest buy signals over the past year -- potentially putting Dow stock Caterpillar (CAT) and this pair of biotechs on bulls' radar. For options traders, these two retail stocks may be worth a second look.

Bank Earnings Roll In, Blue Chips on Tap

This week marked the start of earnings season, with Delta Air Lines (DAL) stock snapping its lengthy losing streak after the airline reported first-quarter profit and revenue beats. The financial sector was in the limelight, as well, as big bank earnings started rolling in. Ahead of results from BlackRock (BLK), JPMorgan (JPM), and Citigroup (C), though, Deutsche Bank (DB) wowed Wall Street by announcing it has replaced embattled CEO John Cryan.

Financial firms will continue to unveil quarterly results next week, with Bank of America (BAC) set to kick things off bright and early on Monday. Several Dow components are also on tap to report, as is aluminum giant Alcoa (AA) -- whose shares got a lift earlier this week after the Trump administration imposed new sanctions on Russia.

Published on Apr 13, 2018 at 2:26 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Unusual Trading Activity
  • Investor Sentiment

After a multi-year downtrend that saw the stock fall from around $40 to as low as $10.43 back in December, shares of SeaWorld Entertainment Inc (NYSE:SEAS) have actually shown signs of life. They're on pace for a third straight positive quarter, and are trading notably higher today amid news the company received a Wells notice from the Securities and Exchange Commission (SEC) in connection to claims the company misled investors in recent years. SEAS stock was last seen trading up 4.2% at $16.04, on pace for its highest settlement since July.

Fueling the equity's rise in recent months has been a corresponding drop in short interest. In fact, short interest on SeaWorld peaked just before the stock bottomed. Still, 39% of the total float is dedicated to short interest, which would take more than 12 sessions to buy back, going by average daily volumes. Clearly there's room for this short-covering trend to continue.

seas stock price

Despite the stocks' recent rise, the bearish sentiment seen from analysts is understandable; in fact, it could surprise some people that SEAS still has four "strong buy" recommendations from covering brokerage firms. As it stands today, the average 12-month price target comes in below current levels, at $15.14.

The same negative sentiment can be seen from options traders, too. For example, put open interest stands at 278,729 contracts, compared to just 96,440 calls. Big open interest can be found at LEAPS like the January 2019 and January 2020 20-strike puts, and there's also heavy open interest at the June 17 put.

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

1640638248

 


MORE | MARKETstories


Cava Group Stock Crumbles After Q2 Revenue Miss
Cava Group stock collapsed after falling short of revenue expectations
Intapp Stock Rebounds on Beat-and-Raise
Intapp is surging off its recent lows