WMT to Release Earnings on February 18


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Walmart Inc. (WMT) is scheduled to release earnings on February 18, 2020, before the market opens, and will hold a conference call at 7:00 AM ET on the same day. The stock currently trades at 117.89, which is 2.3% lower than the close following its last reported earnings, trading with a range of 112.68 to 125.38 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 4.5% move for this earnings, and during the previous earnings release, the stock experienced a -0.3% move. Over the last 12 quarters, the absolute average move has been ± 4.3%, with a minimum move of 0.3% and a maximum move of 10.9%. WMT has experienced 5 larger-than-expected earnings moves in the last 12 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected two notable historical trends.
3 Days After Earnings:For 9 of the last 12 quarters (75%), WMT stock price has gone down in the 3 days following earnings. It has had an average loss of -1.2% during that span.
Earnings Opening Gap:For 9 of the last 12 quarters (75%), the stock price has gapped open with significant gains, on average opening up +1.4%.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling the day before earnings Credit Call Sprd (S25C, L15C)

Short 1 25-Delta Call, Long 1 15-Delta Call spread had 100% winning occurrences, for an average gain of  20%. Additionally, selling at-the-money straddles 1 Day After and holding for a week  resulted in 83%% winning occurrences -- the average return was a 4%.

EPS Estimate

Analysts are currently expecting WMT to report an earnings of $1.44 per share, compared to $1.41 for the same quarter last year. Revenue is expected to come in at $142.6 billion versus $138.8 billion for the previous year.