Earnings Preview: ORCL, ADBE, PIR


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The earnings release schedule is extremely thin this week.  With the final quarter of the calendar year winding down,  most companies won't start reporting their results until mid-January.  To see all the earnings releases that are coming up, visit Market Chameleon's Earnings Calendar.

A couple notable names are on the schedule this week, so traders should be advised:

Pier 1 (PIR) - December 14, After Market Close

 Ahead of the release of its September earnings statement, furniture retailer Pier 1 issued a warning, lowering its earnings forecast and announcing the resignation of its CEO.  This sparked a sharp drop in its stock price.  Shares fell to a closing mark of $3.84 the day after the announcement, its lowest close since late January.

The stock began to drift higher from there and held in a range well off its low into November.

Over the last several weeks, the stock has gained significant ground, helped by an improved earnings forecast for its latest quarter.  In mid-November, Pier 1 announced that it now expects its quarterly results to be at the high end of its previously announced guidance range.

Last week, PIR recorded a closing mark of $6.83, its highest finish since late April.

Implied Volatility for PIR was in a relatively tight range from July into late November.  Lately, though, IV has moved above this range to reach a level of 69.9, its highest mark since late June.

The ATM Straddle premium for PIR for the December 16 expiration is $0.67, or 9.9%.  The company is scheduled to report its quarterly results on December 14. View more PIR earnings analysis.

Oracle (ORCL) - December 15, After Market Close

The business software maker issued a disappointing report last time around.  The release took place on September 15 and spared a notable drop in the company's stock price.  Shares fell $1.94 to $38.92 the day after earnings were released and continued to drift lower to a level below $38 in the second half of October.  Shares have recovered lately, but remain below their levels headed into the September earnings report.

For this quarter, analysts are looking for a profit of $0.61 per share, down from last year's mark of $0.63 per share.  The top-line is projected to rise by about 2 percent to $9.16 billion.

Implied volatility for ORCL has been rising notably since late November.  It is currently sitting at 27.7, i's highest level since the September earnings release.  Prior to the September report, IV reached a level of 32.3, its highest mark since February.

The ATM Straddle premium for the December 16 expiration is $1.69, or 4.2%.  The company is scheduled to announce its earnings on December 15 after the market closes. View more ORCL earnings analysis.

Adobe (ADBE) - December 15

The maker of the Acrobat documents software issued a blockbuster report in September, which saw the company beat expectations and sent shares to a new high for the year.  The stock continued to rise from there, peaking on October 24 with a closing high of $110.81.  Some profit taking followed, with shares drifting down to below $100, before ticking up again lately.

Implied Volatility for ADBE has been climbing since late October and is currently sitting at 32.5, its highest level since its June earnings report, when IV reached a level of 33.4.

The company is expected to earn $0.86 per share for its latest quarter, up from $0.62 per share last year.  Revenues are expected to rise nearly 22% to $1.59 billion.

The ATM Straddle premium for the December 16 expiration is currently $4.92, or 4.7%.  Adobe is scheduled to report its quarterly results on December 15. View more ADBE earnings analysis.