Tiffany: The Market Expects A 5% Move After Earnings

Tiffany & Co. (NYSE: TIF) reports Q1 earnings ahead of the market open Wednesday.

Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan said that based on implied volatility, the market was expecting a move of just under 5 percent (up or down) in the stock following earnings.

Since the company’s previous earnings release, the stock had risen approximately 4.5 percent, however, the stock was getting “beaten-up” somewhat on Tuesday, Kinahan noted, after the stock began to fall shortly before 10AM.

Looking at activity in the options market, Kinahan said there was increased buying activity in both At-The-Money and In-The-Money positions, with the most buyers coming in for the June $87.50 Puts and June $80 Puts.

Related Link: What’s Coming For Tiffany?

While shares of jewelry and specialty retailer opened higher Tuesday, the stock tumbled and failed to regain its losses for the day with shares closing at $85.53, down 1.59 percent.

The price action Year to Date was also negative after the stock fell from the $106 level at the beginning of January to the $86 level by mid-January. Overall, the stock is down nearly 20 percent in 2015.

The Estimize consensus expected EPS of $0.79 on revenue of $963.93 million. In comparison, the Wall Street consensus was less bullish and expected EPS of $0.69 on revenue of $927.18 million while he company had guided revenue at $910.80 million for the quarter.