Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Sep 24, 2020 at 10:41 AM
  • Buzz Stocks
 
Published on Sep 24, 2020 at 9:18 AM
  • Buzz Stocks

Darden Restaurants, Inc. (NYSE:DRI) stock is on the rise this morning, following the Olive Garden parent's fiscal first-quarter earnings of 56 cents per share, which exceeded Wall Street's estimates of 5 cents per share. Revenue, meanwhile, missed analysts' estimates, with sales at roughly 82% of the prior year's levels. At last check DRI is up 3.3% at $93.01.

While Darden stock has made a valiant effort to separate itself from its mid-March trough, it still has quite a ways to go before reclaiming its pre-pandemic levels. The stock seems to have plateaued just below the 320-day moving average, too, though former pressure at the 180-day moving average seems to have moved in as support in the past month. For the year DRI is still down about 17%. 

Analysts have remained mum this morning, but optimism prevails among the brokerage bunch. Fifteen in coverage consider DRI a "buy" or better, compared to nine "hold" ratings. The consensus 12-month price target of $92.67, meanwhile, is a 3% premium to last night's close. 

The options pits tell a different story. This is per Darden's 50-day put/call volume ratio of 1.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands in the slightly elevated 68th percentile of its annual range, suggesting a healthier-than-usual appetite for long puts of late. 

Echoing this, DRI's Schaeffer's put/call open interest ratio (SOIR) of 1.68 stands higher than 92% of readings from the past year. This implies short-term option traders have rarely been more put-biased. 

 

Published on Sep 23, 2020 at 2:46 PM
  • Analyst Update
  • Quantitative Analysis

 

 
Published on Sep 23, 2020 at 10:50 AM
  • Intraday Option Activity
  • Buzz Stocks
 
Published on Sep 21, 2020 at 12:30 PM
  • Earnings Preview
  • Intraday Option Activity
This drop comes one day ahead of the company's fiscal fourth-quarter earnings report, which comes out ahead the open tomorrow, Sept. 21. 
Published on Sep 11, 2020 at 10:50 AM
  • Intraday Option Activity
  • Buzz Stocks
The Midwest grocery chain reported adjusted second-quarter earnings of 73 cents per share on $30.5 billion in revenue, both of which topped analyst estimates. Thanks to a greater online presence, Kroger's same-store sales growth forecast was upped for 2020 as well, while the company also announced a new $1 billion share buyback program. 
Published on Sep 11, 2020 at 10:04 AM
  • Intraday Option Activity
  • Buzz Stocks
In just the first hour of trading today, over 60,000 calls and 11,000 puts have crossed the tape. That volume is running at five times the intraday average, and pacing for the highest percentile of its annual range. 
Published on Sep 10, 2020 at 10:02 AM
  • Intraday Option Activity
  • Buzz Stocks
Video game retailer GameStop Corporation (NYSE:GME) entered the earnings confessional this morning, reporting second-quarter profits and revenue that came in lower than analysts' estimates.
Published on Sep 9, 2020 at 2:52 PM
Updated on Sep 9, 2020 at 4:03 PM
  • Intraday Option Activity
  • Buzz Stocks

 

 
Published on Sep 4, 2020 at 10:37 AM
  • Intraday Option Activity
  • Buzz Stocks

All eyes are on Broadcom Inc (NASDAQ:AVGO) this morning, after the Apple supplier stepped into the earnings confessional post-close as tech stocks crumbled. Last night, Broadcom reported adjusted fiscal third-quarter earnings of $5.40 per share on $5.82 billion in revenue, both of which topped Wall Street estimates. The company also upped its current-quarter outlook, thanks to boosted demand for 5G and data-center chips.

In response, analysts have rushed to adjust their price targets. At least 15 brokerages have issued price-target hikes, the highest coming from BofA Global Research to $450 from $400. Meanwhile, Piper Sandler praised Broadcom for showing "meaningful growth as it enters the heat of the wireless ramp over the next nine to 12 months."

All of this action has AVGO up 1.5% to trade at $357.46 at last check, shaking off the profit-slashing tech-selloff. The stock scored a record high of $378.96 on Wednesday, and despite yesterday's pullback, it has more than doubled off its March 18 four-year lows of $155.67. 

As alluded to earlier this week, call options are incredibly popular. Broadcom's Schaeffer's put/call open interest ratio (SOIR) of 0.91 sits in the low 2nd percentile of its annual range, indicating that near-term traders have rarely been more call biased in the past 12 months. 

Today is more of the same. Calls are trading at six times the average intraday amount just a half hour into today's trading. Leading the charge is the September 400 call, while new positions are being opened at the weekly 9/4 375-strike call. Buyers of the latter are banking on these gains holding through the end of the day, when contracts expire.

Published on Sep 3, 2020 at 11:32 AM
  • Intraday Option Activity
  • Buzz Stocks
 
Published on Sep 3, 2020 at 10:21 AM
  • Intraday Option Activity
  • Buzz Stocks
 

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