Earnings journal

Discussion in 'Journals' started by TheBigShort, Jan 13, 2019.

  1. oldmonk

    oldmonk

    APOG looks overpriced, but strikes are too wide. Not trading BBBY or FAST, so no trades for me today.
     
    #211     Apr 10, 2019
  2. sfwind

    sfwind

    Maybe different this time with the hedge fund activists support as tailwind... will know in one hour...look at the short interest...
     
    #212     Apr 10, 2019
  3. TheBigShort

    TheBigShort

    @srinir Tomorrow our earnings season starts!

    Financials start Friday morning with JPM/PNC/WFC. I don't see any edge selling vol here.

    INFY is on my short vol radar! ImpMv is much higher than avg move last 6 quarters. Here is some fundamental research from Bloomberg. It looks like INFY are affirming their guidance from Q3 report. Lmk what you guys think.

    Infosys Earnings Timeline


    This document is being provided for the exclusive use of TheBigShort. Not for redistribution.

    This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL

    service and BLOOMBERG Data are owned and distributed locally by

    Bloomberg ® 04/10/2019 17:56:48


    BI IT Services, Global Dashboard

    1. Steady IT Spending, Client Wins to Drive Infosys: 4Q Preview

    (Bloomberg Intelligence) -- Stable IT spending should translate into a steady outlook for Infosys, with its

    anticipated initiation of guidance for fiscal 2020 when it reports 4Q earnings on April 12. Large deals completed

    this year will also aid growth, driven primarily by North American clients financial-services and utilities spending.

    Meanwhile, comments on disruptions in European IT budgets will be closely watched. Demand for digital services

    and emerging technologies will likely be the main focus of growth, comprising more than 30% of sales and

    climbing 3x above the company average.

    Infosys should continue to show investments in localization efforts, boosting headcount in the U.S., as well as

    higher spending on growth initiatives. Along with rupee appreciation and compensation costs, operating margin

    expansion will likely be limited. (04/05/19)

    Key Points:

    Sales Expected to Rise 11% to $3.1 Billion on Digital Demand,

    Steady IT Spending | EM10 »

    Adjusted EPS Estimated to Reach 13 Cents, Increasing 1% on

    Headcount Expense, Investments and Rupee Appreciation | EM1 »

    Communication Sector Likely to Be Pressured in 4Q, With Some

    Relief From Previous Deal Wins | BI »

    Large Wins to Drive Spending; Total Contract Value Rose to $4.7

    Billion in First Nine Months of This Fiscal Year vs. $2.2 Billion in

    Fiscal 2018 | BI »

    Full-Year Operating Margin of 22-24% Expected, Averaged 23.3%

    This Year | BI »

    Additional Resources:

    Analyzer | BI »

    Earnings Calendar | EVTS »

    Company Primer | BICO »

    2. Infosys’ Growth Affirms Steady Client Budgets: Earnings Outlook

    Post-3Q Earnings Outlook: Infosys echoed the sentiment of peer Tata Consultancy that IT budgets are steady,

    which should bode well for the company going into fiscal 2020. Along with an increase in full-year sales guidance,

    we believe Infosys should report low-double-digit constant-currency growth in 4Q, continuing the momentum seen

    throughout the year. Demand for digital offerings across regions should fuel this growth, with these newer

    technologies expanding 3x the company average and making up about 32% of sales vs. 26% last year.

    Employee-focused expenses are likely to continue weighing on margin expansion, as attrition remains above

    peers. Digital investments and sales-and-marketing costs are pressuring profitability of key verticals such as

    financial services, though are likely to slow in 2020. (01/11/19)

    Highlights From Recent Results:

    Sales Rose 8%, 10% in Constant Currency, to $2.97 Billion on

    Strong Demand Across Regions for Digital Products | EM10 »

    Adjusted EPS Declined 34%, Reaching 12 Cents on Digital,

    Employee-Related Expenses | EM1 »

    Attrition Increased 120 Bps to 19.9%, Remains Higher Than Peers |

    BI »

    Operating Margin of 22.6% Declined 170 Bps on Higher Sales and

    Marketing, Utilization and Digital Investments | BI »

    Management Raised Full-Year Sales Guidance to 8.5-9% in

    Constant Currency From Last Quarter's 6-8% | GUID »

    Additional Resources:

    Analyzer | BI »

    Earnings Release | DOCC »

    Earnings Call Transcript | DOCC
     
    #213     Apr 10, 2019
  4. sfwind

    sfwind

    I would pass. Spread is too wide and VOL is not high enough.
     
    #214     Apr 10, 2019
    TheBigShort likes this.
  5. TheBigShort

    TheBigShort

    LOL I spent like 45 minutes doing research on this company.. only to now look at the price of the stock.... sorry guys its only 11$ forget it. That's embarrasing
     
    #215     Apr 10, 2019
    Niel Vol and .sigma like this.
  6. TheBigShort

    TheBigShort

    In on the WFC 132C 44.5/48.5/50.5 April 18 FLY for 2.45. Looking to get 4 vol points out of this by end of day.
     
    #216     Apr 12, 2019
    .sigma likes this.
  7. oldmonk

    oldmonk

    Any reason why you're going with an assymetric fly? I traded WFC, closed at open.
     
    #217     Apr 12, 2019
  8. TheBigShort

    TheBigShort

    Just a small preference. The PnL at the peak of the the fly EOD was higher than the 121 and it had initial negative deltas. Getting hit right now. was up 20 cents until WFC just started on a Flash crash. Cant escape!

    Nice trade dude. The thing didnt even gap
     
    #218     Apr 12, 2019
  9. TheBigShort

    TheBigShort

    Does anyone no why WFC is down 5% in 15 min?
     
    #219     Apr 12, 2019
  10. TheBigShort

    TheBigShort

    Out @ 1.85 can not abide. WFC down 6%(from intraday peak)
     
    #220     Apr 12, 2019