Earningsplay
$VCRA provide outstanding Fourth Quarter 2020 Financial ResultsVocera Announces Fourth Quarter 2020 Financial Results
$VCRA Today reported total revenue of $56.6 million for the fourth quarter of 2020, an increase of 14% compared to last year.
GAAP net income of $0.1 million compared to a GAAP net loss of $(1.7) million last year
Non-GAAP net income of $9.7 million compared to $4.9 million last year
Adjusted EBITDA of $13.1 million compared to $6.9 million last year
Full-year bookings were $233.3 million, up 17% year-over-year
Deferred revenue and backlog combined of $173.9 million as of December 31, 2020, an increase of 28% over last year
Earnings per share were up 86.67% over the past year to $0.28, which beat the estimate of $0.20.
finance.yahoo.com
finance.yahoo.com
The Art of Earnings Speculation - First Ask the Right QuestionsIf anybody tells you that "playing" earnings reports is the equivalent to pure-chance gambling is one or more of the following:
1) A person that has recently speculated in the wrong direction and lost all of his options equity in one afternoon
2) A very inexperienced trader or investor that plays "long ball" and thus does not waste time worrying about short-term events
3) Highly systematic traders that have tried and failed at programming the nuanced details required to properly identify highly reactive setups
The third point above is what this post is all about. Earnings speculation is wholeheartedly an artform; very little science can be applied to consistent success. Essentially, the keys to speculative success are:
i.) Understanding which information is most relevant toward picking out highly reactive situations
Start by simply asking the questions presented above (and at the bottom of this section for reference).
ii.) Mastering the concept of relativity; within the context of public reaction to financial news
Example: For the past three weeks, unemployment numbers have missed expectations. There is another report coming out in 15 minutes. But Tesla just reported that they just got FDA approval for a new model of EV that can administer anesthetics to urgent care patients being transported to the hospital in critical condition. In all likelihood, another miss on the unemployment front will certainly elicit another collective groan, however, the Tesla news will probably cause the net transaction of information to tick the market higher, all else equal.
iii.) Knowing that taking both sides of the report is essential to long-term success.
Firstly, Wall Street is the dictator of all earnings results. It is the collective average analyst expectations that determine a "beat" or a "miss." A top-line beat refers to a company's quarterly report that posted higher-than-expected revenues than was "estimated" by analysts. Top-line beats and misses have been more relevant in terms of creating highly reactive setups than those of the bottom-line variety. Bottom-line refers to actual earnings - the stuff at the bottom of the income statement that factors in all of the financial trickery companies can take advantage of to become more profitable. The market's recent focus on top-line is, in my opinion, therefore a more correct evaluation of future business success for any given company.
For the sake of brevity, I will keep the detailed explanations at a minimum for this post. Ultimately, this is meant to serve as a pre-cursor to those that have an interest in improving their returns when they do (inevitably) speculate on earnings reports.
If you find this information helpful, let me know in the comments section. There is so much that goes into successful earnings speculation that one post cannot possibly do it justice. Lastly, I have included the questions presented in the post at the bottom of this write-up for additional reference.
-Perma-Earnings-Pig
Questions to Ask Before an Earnings Report:
1) How has the stock reacted when it missed estimates in prior quarters?
2) In the same week, how have prices of stocks in the same industry group reacted to surprises in either direction?
3) Where in the last nine-month price range is the stock trading at over the last three weeks?
4) Has the market been trending upward since the prior month?
5) When (date, time, day of the week) is the report? What other companies are reporting at the same timeslot?
NLS post earnings movesAdjustments made from my previous chart. NLS could end up moving a little faster than I thought.
Just adding a faster move into the chart
#AMD may have big gap up today on after hours.First of all , i'm testing an earning strategy . So far the success rate isn't that great so i'm keep tweaking it .
My study suggests that #AMD may have big gap up today . I'm talking about +10% gap .
DON"T TRADE BLINDLY .I just wanted to share that data with you fellow traders . BEFORE THE FACT HAPPEN !
BUY $FB PT 275/280 SL 244 - #chartsRationale
Tech is cheap, funds will be looking for bargains.
Entry would be at mid term Sept support, shot term volume shelf.
Volume has increased considerably in the last few days.
FB earnings at the end of the month
Calls dominate options open interest for the next few weeks
When the market was selling off on Friday, FB stayed green for the day, indicating underlying strength.
Profit Target just below the major volume shelf anchored to November.
Nike earnings have serious potential to set a course.As seen in this 4 hr chart, Nike has been in an ascending channel since the corona sell off/rebound. The price action has moved in accordance with the upward parallel channel it is seemingly advancing in. It has recently slowed down and failed to rise back above the midline of the channel recently. Heres the tricky part, Nikes recent sell off leaves this one in the middle of a grey area territory. The chart setup is perfect for a BIG move around earnings, which way is very much so up in the air. As previously stated this one falls right in the middle of the current gray area, RSI is nearing oversold, but if there is no RSI support around the 40/50 area, and an increase in selling volume, this one could have lost steam, change course, and fall into a bearish channel downwards back towards 105. Nike earnings and the investors reaction to said earnings, have the possibility to set this one on a path that it could possibly take into the end of the year.
(*personal advice: always play earning safely with a neutral strategy*)
Bullish (possible by end of year) price target:$140
Bearish (possible by end of year) price target:$105
Earnings could set the future course for Nike.
Canadian banks offer high-yielding cushion in a correction.If you're worried that growth stocks (the tech and now healthcare stocks) are just ridiculously valued, then perhaps you should think about Canadian bank stocks as a potential cushion against a potential market correction. Earnings beat analyst expectations. Yields are in excess of 4%. Loan loss provisions will gradually find their way back into bank earnings as the economy recovers next year. The steepening yield curve also bodes well for future earnings growth.