Earnings Preview: Another Strong Quarter Expected For FB


Re-Tweet
Share on Facebook
Share on Google+
Share on LinkedIn

 

To see all upcoming earnings release dates in the market, visit MarketChameleon's Earnings Calendar.

Under Armour, Inc. (UAA)

January 31, Before the Market Open

Athletic apparel maker Under Armour is expected to report a quarterly profit of $0.25 per share.  This would be up slightly from last year's mark of $0.24 per share.  Revenue, however, is expected to see significant growth.  The top line is projected to expand by about 20%, rising to a level just above $1.4 billion.

Implied Volatility for UAA has been rising since late December and has accelerated higher in the last couple weeks.  IV closed at 46.5 last Friday, reaching its highest level since April.

The average absolute post-earnings move for UAA for the last four quarters is about 11.9%.  This compares to an average expected move of about 8.4%.

The ATM Straddle premium for UAA for the February 3 expiration is $2.46, or 8.4%.

Facebook (FB)

February 1, After the Market Close

Facebook is among the biggest names set to report earnings this week.

Analysts are looking for the social networking giant to earn $1.31 per share for the quarter.  This would represent growth of nearly 66 percent compared to last year's bottom line of $0.79 per share.

Revenue growth is projected to be about 45 percent.  The top line is expected to rise to nearly $8.5 billion.

Last time around, Facebook reported a quarterly profit that soared to nearly $2.4 billion, or $0.82 per share.  This was up from $896 million, or $0.31 per share, in the same period last year.  Adjusted profit rose to $1.09 per share versus $0.57 per share in the year-ago period, beating estimates of $0.97 per share.

Revenues rose 56 percent to move above $7 billion.  Results were boosted by strong growth in ad revenues.

Facebook's Implied Volatility has been trending higher over the past month or so.  Last week, it reached 30.3, its highest level since its least quarterly report in early November.

For the past four quarters, Facebook has seen an average absolute post-earnings move of 7.4%.  Going into the reports, Facebook had an average expected move of 6.2%.

The ATM Straddle premium for FB for the February 3 expiration is $6.79, or 5.1%.

Hanesbrands Inc. (HBI)

February 2, After the Market Close

Hanesbrands, a clothes maker best known for underwear brands like Hanes and Champion, is projected to report a quarterly profit of $0.58 per share.  This would be up nearly 32% compared to the $0.44 per share that was reported in the same period last year.  Revenue is projected to advance by nearly 21%, climbing to $1.7 billion.

Last quarter, Hanesbrands said its profit rose to $0.56 per share from $0.50 per share in the same period last year.  This met analysts' expectations.  Revenues rose nearly 11% to $1.76 billion.

Implied Volatility has drifted higher since late November.  There was a further tick higher late last week, with IV reaching 42.2.  This was its highest level since August.

Unlike Facebook and Under Armour, Hanesbrands' post-earnings moves have underperformed expectations recently.  The stock has had an average absolute post-earnings move over the last four quarters of 6.8%.  The average expected move over the same period was 10.1%.

The ATM Straddle premium for HBI for the expiration of February 17 is sitting at $1.99, or 8.7%.