Facebook Inc $FB to Release Earnings on January 29

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Facebook Inc. - Class A (FB) is scheduled to release earnings on January 29, 2020, after the market closes, and will hold a conference call at 5:00 PM ET on the same day. The stock currently trades at 216.60, which is 13.0% higher than the close following its last reported earnings, trading with a range of 188.25 to 222.75 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 5.6% move for this earnings, and during the previous earnings release, the stock experienced a +1.8% move. Over the last 12 quarters, the absolute average move has been ± 5.2%, with a minimum move of 0.6% and a maximum move of 19.0%. FB has only experienced 3 larger-than-expected earnings moves in the last 12 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected two notable historical trends.
1 Week Before Earnings:For 10 of the last 12 quarters (83%), FB stock price has gone up in the week before earnings. It has had an average gain of +1.4% during that span.
Earnings Opening Gap:For each of the last 5 quarters, the stock price has gapped open with significant gains, on average opening up +5.9%.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that buying the Credit Call Sprd (S50C, L25C) day before earnings had 92% winning occurrences, for an average gain of +34%. Additionally, buying at-the-money straddles only resulted in 25% winning occurrences, for an average return of -3.6%.

EPS Estimate

Analysts are currently expecting FB to report an earnings of $2.53 per share, compared to $2.38 for the same quarter last year. Revenue is expected to come in at $20.9 billion versus $16.9 billion for the previous year.