Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Jul 1, 2020 at 3:29 PM
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The health crisis forced Macy's (M) to tap credit lines, lay off thousands of employees and suspend dividends and buybacks in order to stay afloat.

Published on Jun 30, 2020 at 11:18 AM
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The shares of Conagra Brands Inc (NYSE:CAG) are up 2.8% at last check, following the company's positive fiscal fourth-quarter earnings report. The packaged food company announced better-than-expected earnings and revenue, following a pandemic-related surge in product demand. Chief Executive Sean Connolly stated "our business clearly benefited from increased at-home eating in the fourth quarter, as the elevated retail demand outweighed the reduced food service demand." Though optimistic about the long-term, the company is still waiting until next quarter to report its full-year guidance. 

The equity has had a volatile few months, with overheard pressure seen at the $35 region since late April and a floor of support near $32. With an added leg of support at the 70-day moving average, today's pop has CAG back at its year-to-date breakeven mark, and sporting a three-month gain of 18.5%. 

In the options pits, CAG's stock's 50-day call/put volume ratio of 2.46 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 82% of readings in its annual range. In other words, long calls are being picked up at a faster-than-usual rate. 

Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.43 sits in the low 2nd percentile of all other readings from the 12 months. This suggests short-term option players have rarely been more call-biased this year. 

Also worth noting is Conagra stock's attractively priced premiums. This is per the security's Schaeffer's Volatility Index (SVI) of 43%, which stands higher than just 21% of all other annual readings. This means that options players are pricing in relatively low volatility expectations at the moment. 

 

Published on Jun 26, 2020 at 2:45 PM
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Published on Jun 25, 2020 at 3:37 PM
Updated on Jun 25, 2020 at 4:08 PM
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The firm's revenue also beat analysts' expectations. The company attributed the better-than-anticipated results to a spurt in sales of over-the-counter medicines, sanitizers, cleaning, and paper products during the COVID-19 pandemic.

Published on Jun 25, 2020 at 10:58 AM
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The shares of McCormick & Company, Incorporated (NYSE: MKC) are up 3.7% at $177.64 today, and earlier nabbed a record high of $180.93 out of the gate. This comes after the spice and seasoning mix company reported second-quarter profits of $1.47 per share on $1.4 billion in revenue, considerably higher than Wall Street's estimated $1.16 on $1.37 billion. The company attributed the boosted results to an increase in home cooking during COVID-19 lockdowns, and said it expects increased demand to continue through the the second half of 2020.

On the charts, MKC has staged an impressive comeback from its late-March lows near the $112 level, culminating in a then record-high of $180.38 on May 18. And while MKC has traded sideways since then, the stock's 40-day moving average has stepped up as support over those past couple of weeks, a sure contributor to the equity's now 27.7% lead for the quarter. 

Analysts were largely skeptical toward MKC coming into today, with five of the eight in coverage carrying a tepid "hold," while the remaining three called it a "sell" or worse. Meanwhile, the stock's consensus price target of $154.30 is a 12.3% discount to current levels. In other words, MKC could climb even higher in the event of a shift in analyst attention.

The appetite for calls is unusually high in the option pits, however. In the last 10 days, 1.63 calls were bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 82% of readings from the past year, meaning calls are being picked up at a faster-than-usual clip.

The options pits have exploded today, amid limited absolute volume. At last check, call trading was sitting at 10 times the average intraday amount, and almost triple the number of puts traded. The most popular is the July 185 call, with new positions being opened. Buyers of this call are banking on a sustained push higher from MKC in the next month, when the options expire.

Now with earnings in the rear-view mirror, a volatility crush means options are affordably marked. MKC's Schaeffer's Volatility Index (SVI) of 32% sits in the 22nd percentiles of all other readings from the past year. This means options players have been pricing in relatively low volatility expectations at the moment.  
Published on Jun 25, 2020 at 10:38 AM
Updated on Jun 25, 2020 at 10:39 AM
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Financial markets information company FactSet Research Systems (FDS) beat Wall Street's earnings estimations, but fell short of revenue forecasts
Published on Jun 24, 2020 at 3:00 PM
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With various pullbacks caught just above the $12 region recently, the stock is currently testing the 150-day moving average, which coincides with the $13 level. Looking further out, pressure at the $16 mark is keeping the shares at a 16.5% year-to-date deficit. 
Published on Jun 24, 2020 at 10:21 AM
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Recreational vehicle manufacturer Winnebago Industries (WGO) saw a rise in its shares after it reported fiscal third-quarter losses and revenue that beat analysts' expectations.
Published on Apr 21, 2020 at 9:37 AM
Updated on Jun 24, 2020 at 10:16 AM
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KO is down after the company also predicted its current-quarter sales would take a hit from the coronavirus lockdown, with half of its revenue tied up in public venue sales.
Published on Apr 22, 2020 at 10:22 AM
Updated on Jun 24, 2020 at 10:16 AM
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After last night's close, Netflix reported first-quarter earnings of $1.57 per share, lower than Wall Street's anticipated $1.65. 
Published on Apr 23, 2020 at 10:33 AM
Updated on Jun 24, 2020 at 10:16 AM
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The candy king is lower after reporting first-quarter earnings of $1.63 per share on revenue of $2.04 billion -- both lower than Wall Street's respective estimates of $1.71 per share and $2.08 billion.
Published on Apr 23, 2020 at 12:18 PM
Updated on Jun 24, 2020 at 10:16 AM
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Despite the miss, the stock is up 10.9% at $41.03, bolstered by the firm's prediction of a quick economic recovery in Macau, Singapore and China. 

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