Why These Stocks Tumbled In After-Hours

Shares of Nike Inc (NYSE: NKE) were trading down more than 2 percent on Tuesday’s after-hours session, following the announcement of the company’s third quarter financial results. The apparel and footwear giant reported earnings of $0.55 per share, up from $0.45 per share posted a year ago, and $0.06 above the Street’s consensus. Revenue of $8.032 billion, however, came in below expectations for $8.2 billion.

Red Hat Inc (NYSE: RHT) was also tumbling after the bell rang on Tuesday. The shares lost more than 2 percent in after-hours, even though the company delivered fourth quarter earnings of $0.52 per share, beating the Street’s consensus by $0.05. Revenue of $543.5 million also came in above expectations for $535.97 million. However, investors were somewhat disappointed for the guidance that management provided for the ongoing quarter. For its fiscal first quarter, Red Hat projects EPS of $0.50 on revenue of $558 million to $566 million. Analyst were modeling EPS of $0.50 as well, on revenue of $554.6 million.


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This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Finally, there’s Five Below Inc (NASDAQ: FIVE), which lost more than 3 percent since the market closed. Although the company beat expectations for its fourth quarter, posting earnings of $0.77 per share ($0.01 above consensus) on revenue of $326.4 million, $2.66 ahead of estimates, guidance for the first quarter was dissatisfying. Management guided for first quarter earnings of $0.09 to $0.10 per share, on revenue of $186 million to $189 million. Consensus, however, stands at $0.10 per share and $188.6 million.

 

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: EarningsNewsGuidanceAfter-Hours CenterMovers