Earnings announcement trading strategy

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Buy or Sell SNAP Stock Ahead of Its Results?
Forbes· 2025-08-03 12:15
Group 1 - Snap is scheduled to announce its earnings on August 5, 2025, with historical trends indicating a 61% likelihood of negative one-day returns following earnings announcements, with a median decrease of -17.0% and a peak fall of -39.1% [2][3] - Analysts project Snap will report earnings of $0.02 per share and sales of $1.35 billion, compared to the previous year's earnings of $0.02 per share and sales of $1.24 billion [3] - Snap currently has a market capitalization of $16 billion and generated $5.5 billion in revenue over the past twelve months, but reported an operational loss of $648 million and a net loss of $532 million [4] Group 2 - Over the past five years, Snap has recorded 18 earnings data points, with 39% resulting in positive one-day returns, which drops to 10% when considering the last three years; the median of positive returns is 24%, while the median of negative returns is -17% [7] - The relationship between one-day, five-day, and twenty-one-day returns post-earnings can inform trading strategies, particularly if a strong correlation exists between these return periods [8] - Peer performance can influence Snap's stock response post-earnings, as market pricing may reflect peer earnings results prior to Snap's announcement [9]
Buy Or Sell HPE Stock Ahead Of Its Earnings?
Forbes· 2025-06-02 13:50
Core Insights - Hewlett Packard Enterprise (HPE) is expected to announce earnings on June 3, 2025, with historical trends indicating a positive stock reaction post-announcement [1][2] - Analysts project earnings of $0.33 per share on revenues of $7.5 billion, a decrease from $0.42 per share and $7.2 billion in revenue from the same quarter last year [3] - HPE currently has a market capitalization of $23 billion and generated $31 billion in revenue over the past twelve months, with operating profits of $2.4 billion and net income of $2.8 billion [3] Historical Performance - Over the last five years, HPE has recorded a favorable one-day return in 63% of cases following earnings announcements, with a median increase of 3.4% and a peak single-day rise of 10.7% [1][5] - The percentage of positive one-day returns increases to 64% when examining data from the last three years [5] - The median of the 12 positive returns is 3.4%, while the median of the 7 negative returns is -5.2% [5] Trading Strategies - Traders can prepare for earnings releases based on historical probabilities or evaluate immediate and medium-term relationships post-earnings to inform trading choices [2] - A lower-risk strategy involves assessing the correlation between short-term and medium-term returns following earnings, allowing traders to position themselves accordingly [4][5] Peer Performance - The performance of peers can impact HPE's stock reaction post-earnings, with adjustments potentially starting before the earnings announcements [6] - Historical data comparing HPE's post-earnings performance with peers indicates that peer stock returns also reflect post-earnings one-day returns [6]