Unusual Options Activity, Mon 6/12/23

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:

• NCLH Jun 18 calls are seeing interest with the underlying stock up 8% (volume: 7610, open int: 330, implied vol: ~60%, prev day implied vol: 44%). Co is expected to report earnings early August.
• SAVE Jul 17.5 calls (volume: 2100, open int: 230, implied vol: ~34%, prev day implied vol: 25%). Co is expected to report earnings early August.
• K Jun 65 calls (volume: 3500, open int: 0, implied vol: ~25%, prev day implied vol: 17%). Co is scheduled to present at a Evercore conference on Thursday, June 15. Co is confirmed to report earnings August 3 before the open.
  

Bearish Put Activity:

• ZION Jun 31 puts (volume: 1990, open int: 170, implied vol: ~77%, prev day implied vol: 55%). Co is scheduled to present at a Morgan Stanley conference tomorrow. Co is confirmed to report earnings July 19 after the close.
• DAL Jun 39.5 puts (volume: 2570, open int: 710, implied vol: ~34%, prev day implied vol: 29%). Co is expected to report earnings mid-July.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.84, VIX: (14.52, +0.69, +5.0%).
This week is options expiration -- Friday, June 16th is the last day to trade June equity options.

Insider Trading (Fri 1/20/23)

 Notable purchases -- 10% owner adds to APPN; notable sales -- Icahn active in HRI

Buyers:

• APPN 10% owner bought 320,000 shares at $35.65 - $38.66 worth ~$11.9 mln.
• CCO 10% owner bought 400,000 shares at ~$1.3603 worth ~$544K.
• TNYA Director & 10% owner bought 185,151 shares at $2.32 - $2.60 worth ~$465K.

Sellers:

• DAL SVP, Fin & Controller sold 15,529 shares at $38.20 worth ~$593K.
• HRI 10% owner Carl Icahn sold 112,157 shares at $141.29 - $144.64 worth ~$16.1 mln.

==Delta Air Lines (DAL) reported earnings on Fri 13 Jan 23 (b/o)

 

• Delta Air Lines beats by $0.14, beats on revs; guides Q1 EPS below consensus, revs above two analyst estimate; guides FY23 EPS in-line, revs above consensus

-=Delta Air Lines (DAL) reported earnings on Wed 13 Oct 21 (b/o)

 

Delta Air Lines beats by $0.15, beats on revs; says recent rise in fuel prices will pressure its ability to remain profitable for the December quarter

• Reports Q3 (Sep) earnings of $0.30 per share, excluding non-recurring items, $0.15 better than the S&P Capital IQ Consensus of $0.15; revenues rose 199.0% year/year to $9.15 bln vs the $8.46 bln S&P Capital IQ Consensus.
• Adjusted pre-tax income of $216 million excludes a $1.3 billion net benefit related to the second payroll support program extension (PSP3) partially offset by debt extinguishment charges and mark-to-market adjustments on our investments.
• Domestic passenger revenue was 72 percent restored compared to September quarter 2019, a 17 point improvement in the rate of recovery versus the June quarter 2021. International passenger revenue recovered to 42 percent of September quarter 2019 levels, a 16 point improvement sequentially.
• Total operating expenses, adjusted of $7.8 billion in the September quarter 2021 increased 12 percent sequentially, primarily driven by non-fuel costs from the continued restoration of the airline. Compared to September quarter 2019, total operating expenses, adjusted were down $2.6 billion or 25 percent.
• Q4 Outlook: Revenue Recovered to low 70s percentage; capacity: 80% restored. "While demand continues to improve, the recent rise in fuel prices will pressure our ability to remain profitable for the December quarter. As the recovery progresses, I am confident in our path to sustained profitability as we continue to provide best-in-class service to our customers, strengthen preference for our brand, while creating a simpler, more efficient airline."

Earnings this week : Oct 11 - 15, 21 (wk 41)

The Q3 earnings season begins this week.

Monday (Oct 11)

•  none

Tuesday (Oct 12)

• Morning: AZZ FAST
• Afternoon:  PNFP SGH

Wednesday (Oct 13)

• Morning:  BLK DAL FRC JPM

Thursday (Oct 14)

• Morning: BAC C CMC DPZ MS PGR TSM USB UNH WBA WFC
• Afternoon:  AA DCT WAFD

Friday (Oct 15)  

• Morning:  BMI GS JBHT PNC PLD SXT TFC

=Delta Air Lines (DAL) reported earnings on Tue 14 Jan 20 (b/o)

Delta Air Lines beats by $0.31, reports revs in-line; guides Q1 revs below consensus; guides FY20 EPS in-line

Reports Q4 (Dec) earnings of $1.70 per share, excluding non-recurring items, $0.31 better than the S&P Capital IQ Consensus of $1.39; revenues rose 6.5% year/year to $11.44 bln vs the $11.37 bln S&P Capital IQ Consensus.

Total unit revenue (TRASM), adjusted, increased 2.4%, exceeding expectations on strong holiday travel demand.

Non-fuel operating expense on a unit basis (CASM-Ex) up 4.4% compared to the prior year period, in line with the company's expectations of 4% to 5%

Co issues downside guidance for Q1, sees Q1 revs of +5-7% to $11.0-11.2 bln vs. $11.14 bln S&P Capital IQ Consensus.

Co issues in-line guidance for FY20, sees EPS of $6.75-7.75 vs. $7.19 S&P Capital IQ Consensus.

Earnings this week : Jan 13 - 17, 20 (wk 3)

Monday (Jan 13)

• Morning: SJR

Tuesday (Jan 14)

• Morning: APHA C DAL FRC INFO JPM WFC WIT
• Afternoon: OGI WAFD

Wednesday (Jan 15)

• Morning: BAC BLK GS PNC USB UNH
• Afternoon: AA EGBN HWC KMI

Thursday (Jan 16)

• Morning: BK HOMB IIIN MS PPG TSM WNS
• Afternoon: OZK BEDU CSX PBCT PRGS

Friday (Jan 17)

• Morning: CFG FAST FHN JBHT KSU RF SLB STT

Notable earnings reports:

• JPMorgan (JPM), Wells Fargo (NYSE:WFC), Delta Air Lines (NYSE:DAL), Citigroup (NYSE:C), IHS Markit (NYSE:INFO) and Aphria (APHA) on January 14; 
• Bank of America (NYSE:BAC), Goldman Sachs (GS) United Healthcare (UNH), BlackRock (NYSE:BLK), U.S. Bancorp (NYSE:USB), Alcoa (NYSE:AA) and PNC Financial (NYSE:PNC) on January 15; 
• Morgan Stanley (NYSE:MS), Taiwan Semiconductor (NYSE:TSM) and CSX (NASDAQ:CSX) on January 16; Fastenal (NASDAQ:FAST), J.B. Hunt Transport (NASDAQ:JBHT), Kansas City Southern (NYSE:KSU), Schlumberger (NYSE:SLB) and State Street (NYSE:STT).

Delta Air Lines (DAL) reported earnings on Thur 10 Oct 19 (b/o)

** charts before earnings **

 

** charts after earnings **

Delta Air Lines beats by $0.06, reports revs in-line; guides Q4 EPS mid point below consensus

Reports Q3 (Sep) earnings of $2.32 per share, $0.06 better than the S&P Capital IQ Consensus of $2.26; revenues rose 5.1% year/year to $12.56 bln vs the $12.61 bln S&P Capital IQ Consensus.

Total revenue and adjusted total revenue are a new quarterly record, as the company served a record 55.2 mln passengers in the quarter.

Total revenue per available seat mile increased 1.1%

Total unit revenue, adjusted, increased 2.5%; Total unit revenue and total unit revenue adjusted increases were driven by healthy leisure and corporate demand and an approximate one point benefit from the amended American Express agreement.

Consolidated operating cost per available seat mile decreased 2.1% compared to the September 2018 quarter, primarily due to lower fuel costs and higher capacity. Non-fuel unit cost increased 2.4% compared to the prior year period, driven by employee costs, record passenger volumes and weather.

Co issues guidance for Q4, sees EPS of $1.20-1.50 vs. $1.50 S&P Capital IQ Consensus.

Earnings this week : Oct 7 - 11, 19 (wk 41)

Monday (October 7)

• None

Tuesday (Oct 8)

• Morning: AZZ DPZ HELE
• Afternoon: LEVI

Wednesday (Oct 9)

• None

Thursday (Oct 10)

• Morning: DAL

Friday (Oct 11) 

• Morning: FAST INFY

Delta Air Lines (DAL) reported earnings on Thur 11 July 19 (b/o)

** charts before earnings **

 

** charts after earnings **

Delta Air Lines beats by $0.07, reports revs in-line; guides Q3 EPS in-line; raises FY19 EPS and revenue; increases dividend 15%

• Reports Q2 (Jun) earnings of $2.35 per share, $0.07 better than the S&P Capital IQ Consensus of $2.28; revenues rose 6.5% year/year to $12.54 bln vs the $12.49 bln S&P Capital IQ Consensus, a new quarterly record, with 52 percent of adjusted revenue from premium products and non-ticket sources; 2.3 points of operating margin expansion and $1.8 billion of free cash flow. Total unit revenue, adjusted, increased 3.8% (above 1.5-3.5% original guidance), driven by healthy growth in leisure and corporate revenue and an approximate one point benefit from the amended American Express agreement announced earlier this year.
• Co issues in-line guidance for Q3, sees EPS of $2.10-2.40, excluding non-recurring items, vs. $2.16 S&P Capital IQ Consensus; unit revenue +1.5-3.5%, 
• Co issues in-line guidance for FY19, raises EPS to $6.75-7.25 from $6-7, excluding non-recurring items, vs. $6.98 S&P Capital IQ Consensus; revenue growth to 6-7% from 4-6%. "With record passenger loads, customer satisfaction and $1 billion in revenue growth for the June quarter, demand for Delta's customer-focused product and service has never been stronger. Our third quarter is off to a great start with a new highest revenue day on record on July 7th," said Glen Hauenstein, Delta's president. "We now expect revenue growth of six to seven percent for the year, a $3 billion increase over 2018, as we benefit from our multi-year pipeline of fleet, product, and loyalty initiatives."
• The Board of Directors today declared a quarterly dividend of $0.4025 per share, an increase of 15% over previous levels. This marks the sixth consecutive increase in Delta's dividend since it was established in 2013.
• CEO Ed Bastian on CNBC: Results in the quarter are not one-off. Seeing some softness in Pacific and Atlantic but modest compared to overall strength in domestic business. Benefit from 737 MAX is marginal, domestic supply is down 1-2%.

Earnings this week : July 8 - 12, 19 (wk 28)

Just a few stragglers are due in before the launch of Q2 earnings season the week of July 15.
We are in the calm before the storm as second quarter earnings season picks up next week.
Big banks JPM, WFC and GS in addition to JNJ report on July 16, next Tuesday morning.

Monday (July 8)

• Morning: AZZ

Tuesday (July 9)

• Morning:  LNN PEP
• Afternoon: HELE KSHB WDFC

Wednesday (July 10)

• Morning: ANGO MSM
• Afternoon: AIR BBBY PSMT YRD

Thursday (July 11)

• Morning: DAL FAST

Friday (July 12) 

• Morning: INFY

Notable earnings reports: 

• PepsiCo (NASDAQ:PEP) and Levi Strauss (LEV) on July 9; 
• Bed Bath & Beyond (NASDAQ:BBBY) and AAR Corp. (NYSE:AIR) on July 10; 
• Delta Air Lines (NYSE:DAL) and Fastenal (NASDAQ:FAST) on July 11 and 
• Infosys (NYSE:INFY) on July 12.

=Delta Air Lines (DAL) reported earnings on Thur 11 October 2018 (b/o)

Delta Air Lines beats by $0.06, reports revs in-line; guides Q4 EPS in-line, rev above consensus 

• Reports Q3 (Sep) earnings of $1.80 per share, $0.06 better than the S&P Capital IQ Consensus of $1.74; revenues rose 8.1% year/year to $11.95 bln vs the $11.96 bln S&P Capital IQ Consensus. Adjusted earnings per share were up 16 percent compared to the prior year quarter, driven by revenue momentum, tax reform benefits and a four percent lower share count. Results reflect a $30 million negative impact from Hurricane Florence. Total unit revenues excluding refinery sales (TRASM) increased 4.3 percent during the period driven by strong demand and improving yields. Foreign exchange benefit of ~half a point was offset by the impact of Hurricane Florence.
• Last week, Delta narrowed third quarter EPS to $1.70-1.80 from 1.65-1.85, pre-tax margin to 13% from 12-14% and unit revenue to 4.0-4.5% 3.5-5.5%
• Co issues in-line guidance for Q4, sees EPS of $1.10-1.30 vs. $1.25 S&P Capital IQ Consensus; rev +8% to $11.06 bln vs. $10.7 bln consensus, unit rev +3-5%, pre-tax margin 9-11%.

Delta Air Lines CEO on CNBC; stock +2.5% premarket 

• No cancellations out of Atlanta yesterday or today due to Hurricane Michael; Florida panhandle is restarting service today
• Was able to offset 85% of fuel cost increase in Q3
• Haven't seen any demand slowdown
• Higher rates will help pension liabilities.

Earnings this week : Oct 8 - 12, 18 (wk 41)

Earnings confirmed to report this week

Tuesday (Oct 9)

• Morning: AZZ, HELE

Wednesday (Oct 10)

• Morning: FAST

Thursday (Oct 11)

• Morning: CBSH DAL  DAVA  WBA

Friday (Oct 12)

• Morning: C JPM  PNC WFC FRC

Delta Air Lines (DAL) reported 4Q earnings on Tue 19 Jan 2016 (b/o)

** charts before earnings **

 

** charts after earnings **

 

Delta Air Lines misses by $0.01, misses on revs (preannounced results)  :

• Reports Q4 (Dec) earnings of $1.18 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $1.19; revenues fell 1.5% year/year to $9.5 bln vs the $9.62 bln Capital IQ Consensus.
• Passenger unit revenues declined 1.6%, which includes ~2 points of impact from foreign currency.
  • Co preannounced PRASM and margins.
• "Looking ahead, the overall demand environment remains solid. The breadth of our network scale allows us to focus our commercial efforts on those areas of the business with the best opportunity such as the domestic marketplace, while reducing our exposure in some weaker international regions. While we expect international volatility and currency pressures to result in unit revenue declines of 2.5 - 4.5% for the March quarter, we should see over 10 points of margin improvement given our capacity discipline in the face of a more than 50 percent decline in fuel prices." Raises operating margin to 18-20% from 16-17%.
• "As we look ahead to 2016, we have a significant opportunity to improve our performance even further. With over $3 billion in potential savings from lower fuel prices and numerous commercial, operational and cost initiatives already in place, we expect to again perform in the top tier of the S&P Industrials on earnings growth, margins, and cash flows this year despite global economic challenges."