Unusual Options Activity Fri 3/15/24

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• VFC March 14.5 Calls (volume: 2523, open int: 85, implied vol: ~125%, prev day implied vol: 65%). Co is expected to report earnings mid May.
• ARMK March 31 Calls (volume: 2405, open int: 9, implied vol: ~135%, prev day implied vol: 22%). Co is expected to report earnings early May.

Bearish Put Activity:

• Z March 51 Puts are seeing interest with the underlying stock down 15% (volume: 1438, open int: 0, implied vol: ~256%, prev day implied vol: 54%). Co is expected to report earnings early May.
• USFD March 55 Puts (volume: 1250, open int: , implied vol: ~177%, prev day implied vol: 20%). Co is expected to report earnings early May.

Sentiment: The CBOE Put/Call ratio is currently: 0.90, VIX: (14.40, +0.65, +4.73%).
March 15 is options expiration -- the last day to trade March equity options.

=ARAMARK Holdings (ARMK) reported earnings on Tue 14 Nov 17 (b/o)

ARAMARK Holdings misses by $0.03, misses on revs; guides FY18 EPS below consensus 

• Reports Q4 (Sep) earnings of $0.54 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.57; revenues rose 3.1% year/year to $3.65 bln vs the $3.7 bln Capital IQ Consensus, an organic increase of 2% over the prior-year period. Revenue growth was negatively impacted by an estimated $25 million from natural disasters in the quarter. The North America segment was positively impacted by growth across all sectors. The International segment continued to deliver strong, broad-based organic growth, while Uniform sales were up modestly as expected. Income was negatively impacted by an estimated $17 million from natural disasters in the quarter, with a disproportionate impact in the Uniforms segment related to an asset impairment in Puerto Rico. In North America and International base accounts, the Company drove strong productivity improvements, while continuing to reinvest in technology and capabilities. Uniform income was also impacted by installation costs related to the onboarding of new business.
• Co issues downside guidance for FY18, sees EPS of $2.10-2.20, excluding non-recurring items, vs. $2.21 Capital IQ Consensus, the mid-point of which would represent the fifth consecutive year of double-digit adjusted EPS growth. The co is also expecting full-year free cash flow of greater than $400 million.  

=Aramark (ARMK) reported earnings on Tue 7 Feb 2017 (b/o)

ARAMARK Holdings beats by $0.02, reports revs in-line; reaffirms FY17 guidance; authorizes a $250 mln share repurchase program:

• Reports Q1 (Dec) earnings of $0.55 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.53; revenues rose 0.7% year/year to $3.73 bln vs the $3.72 bln Capital IQ Consensus.
  • Results were driven by organic revenue growth across all three segments. The North America segment was positively impacted by new business in Sports, Leisure and Corrections and continued growth in Education, partially offset by revenue declines in Healthcare and a less favorable Major League Baseball playoff schedule. The International segment continued to deliver solid organic growth, partially offset by previously announced strategic portfolio actions. Uniform sales increased despite energy headwinds.
• Co reaffirms guidance for FY17, sees EPS of $1.85-1.95, excluding non-recurring items, vs. $1.89 Capital IQ Consensus Estimate. The Company is now expecting improved full-year free cash flow of greater than $350 million.
• The Board has authorized the repurchase of up to $250 million of Aramark's common stock over the next two years.