![]() ![]() Our proprietary surprise prediction model - the Zacks Earnings ESP (Expected Surprise Prediction) - has this insight at its core. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.Įstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. The consensus EPS estimate for the quarter has been revised 7.93% lower over the last 30 days to the current level. Revenues are expected to be $1.06 billion, up 14.1% from the year-ago quarter. This natural gas company is expected to post quarterly loss of $16.43 per share in its upcoming report, which represents a year-over-year change of -158.7%. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. On the other hand, if they miss, the stock may move lower. The stock might move higher if these key numbers top expectations in the upcoming earnings report. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. CHK EARNINGS WHISPER FREEUse caution when trading options, and never risk more than you can afford to lose.Wall Street expects a year-over-year decline in earnings on higher revenues when Chesapeake Energy ( CHK Quick Quote CHK - Free Report) reports results for the quarter ended March 2020. Any ideas, and/or forecasts, expressed or implied herein are for informational purposes only, and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. The chart below offers a rough profit/loss for the trade if the position is held through November expiration:ĭisclaimer: I hold no open positions on any stocks, securities, or options mentioned above. A November 28.30 bull call spread could have been had for about $0.83, or $83 per pair of contracts, at the close of trading on Tuesday.Īssuming an ask price of $0.83 for the spread, the maximum profit would be $1.17, or $117 per pair of contracts, with breakeven arriving at $28.83. Traders looking to bet bullishly on CHK ahead of earnings may want to consider a bull call spread centered on the November 28 and 30 strikes. Even more disconcerting is that the 200-day trendline resides near the round-number $30 level, which could provide a double whammy of overhead resistance for CHK. This duo completed a bearish cross in early October, and CHK has been struggling to reclaim its former uptrend ever since. The shares are staring up at resistance from both its 50-day and 200-day moving averages. On the call side, peak front-month open interest totals 13,771 contracts at the out-of-the-money November 31 strike, while another 12,594 contracts reside at the November 30 strike.įrom a technical standpoint, CHK has its work cut out for it. Other put accumulations of note include the November 26 strike (9,532 contracts) and the November 25 strike (8,221 contracts). The result was a bearishly skewed single-session put/call volume ratio of 1.03, as puts edged out calls on the day.Ĭhecking in on CHK's November open interest configuration, we find peak put open interest at the at-the-money 28 strike, totaling 11,441 contracts. During Tuesday's trading activity, CHK saw put volume of 21,570 contracts, compared to call volume of 20,949 contracts. The current average 12-month price target rests at $38 per share – a 35% premium to CHK's close at $28.01 yesterday.Īctivity in the options pits has been less than enthusiastic ahead of the event. According to data from Thomson/First Call, the stock has attracted 21 Buy ratings, compared to 12 Holds and one Sell. Analyst ratings are skewed toward the bullish end of the spectrum heading into Chesapeake's quarterly report. ![]()
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