Earnings preview Apple AAPL

By | Earnings | No Comments

Apple (AAPL) is set to report its highly anticipated June results today i.e. July 24, after the market close. Besides Google (GOOG), Apple (AAPL) is another popular stock with option tarders to play earnings. What to Expect: According to briefing.com, here is what traders are expecting: The Street expects Q3 EPS to grow 33% year-over-year to $10.38 and revenues to grow 31% YoY to $37.43 bln. Not surprisingly, the Street estimates are above the company’s typically conservative guidance of EPS of $8.68 and revenues of ~$34 bln issued on the Q2 release (April). Yet the Street has set relatively low…

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Another Way to Play Priceline (PCLN) Earnings

By | Earnings, Investment Strategy, Iron Condor, Trade Ideas | 4 Comments

Priceline (PCLN) is set to report it’s earning after market close today. According to briefing.com, consensus is $9.29 for EPA while revenue consensus is $1.416 billion. During the past 8 quarters PCLN has consistent outperformed the expectations, usually by a wide margin. Based on current Implied Volatility, it is expected to move roughly $36-$38 in either direction. If you look at the IV profile, there is a huge SKEW between Nov weekly and Nov, and then in Dec and Jan series as well. Going into earings, IV is highly elevated as well. It’s no secret that IV will crash after…

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Harley Davidson (HOG), Run Away or Ride

By | Earnings, Option Trading, Trade Ideas | One Comment

Harley Davidson (HOG) will be announcing results prior to market open tomorrow. The expectation is to deliver $0.52/share. While it can always turn tables around to beat earnings (via price increase etc), I would like to play bearish on this. Fine, I agree that it has a very loyalist customer base, the expectations are already low and all that. But consumer spending going downhill, big ticket items on hold and “needs” taking over “wants”, I don’t expect Harley to announce wonderful results. I don’t have enough information to make comments on how the financial arm doing but my gut says…

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CSX Beats Earnings

By | Earnings, Past Performance | No Comments

Railroad operator CSX Corp. (CSX 28.39) beat first quarter earnings expectations but saw revenues drop due to the economic downturn. For the first quarter, CSX reported earnings of $0.62 per share, $0.11 better than the First Call consensus of $0.51. Revenues fell 17.0% year-over-year to $2.2 billion; the consensus expected $2.26 billion. CSX said the revenue drop off was due to a decline in volumes, driven by significant weakness in industrial production, housing starts, and consumer spending, as well as in the agriculture and energy sectors. Shares of CSX are up 6.5% in the pre-market trading. Essentially, with this positive…

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The Week Ahead

By | Earnings, US Market | No Comments

It’s going to be an action packed week from earnings perspective. Apart from watching their results, keep an eye on what are they saying about the future. Guidance is going to play an important role. If you are planning to play large swings on earnings, don’t forget formula I mentioned earlier- Large Swing in price = Beat/Miss Earnings + Beat/Miss Revenue + Raise/ Lower Guidance on both revenue and earnings. And as a fine prints don’t forget to look at the operating margins. I had shared a lot of ways to play earnings, both directional as well non-directional. Browse through…

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