ROSS STORES (ROST)

EARNINGS RELEASE THURSDAY - MAY 23 (AMC)

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Jump Report

Avg Daily Volume: 2,147,126    Market Cap: 35.72B 
Sector: Services    Short Interest: 1.63

EARNINGS EXPECTATIONS:   

   THIS QTR:   EPS:  1.12     REV:  3,790/M

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   LAST QTR:  EPS: 1.13/share   ACTUAL: 1.20/share  (BEAT)
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   NEXT QTR:  EPS: 1.14/share    REV: 3,970/M
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   FY19:  EPS:  4.52/share    REV: 15,900/M
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*These are the base metrics we will be watching against the actual release numbers

BEAT/MISS HISTORY: 67% OF THE TIME THEY BEAT ESTIMATES

PRIOR ‘JUMP ZONE’ MOVES (3 QTRS %) 2.47, -10.03, -3.9

POTENTIAL JUMP MOVE:   8-10%

Links To Latest News and Headlines

Ross Stores, Inc. (NASDAQ: ROST) (the “Company”) today announced the pricing of a public offering of $500 million aggregate principal amount of senior notes due 2026 (the “2026 notes”) and $500 million aggregate principal amount of senior notes due 2031 (the “2031 notes” and together with the 2026 notes, the “notes”). The 2026 notes will be issued at a price to public of 99.436% of their principal amount and will bear interest at a rate of 0.875% per annum. The 2031 notes will be issued at a price to public of 99.631% of their principal amount and will bear interest at a rate of 1.875% per annum. The Company intends to use the net proceeds from this offering to fund the repurchase of certain of its outstanding senior notes that have been validly tendered and not withdrawn prior to the early tender date of the Company’s previously announced tender offers. The offering of the notes is anticipated to settle on October 21, 2020, subject to customary closing conditions.

Ross Stores, Inc. (NASDAQ: ROST) (the “Company”) today announced the early tender results for its previously announced cash tender offers (the “Tender Offers”), in the order of priority set forth in the table below, for up to an aggregate principal amount of the outstanding senior notes listed in the table below (the “Securities”) such that the aggregate amount payable upon settlement (exclusive of accrued and unpaid interest) for all Securities purchased in the Tender Offers does not exceed the Aggregate Tender Cap (as defined in the Offer to Purchase). The Company also announced that it has increased the Aggregate Tender Cap applicable to the Tender Offers to $1,000,000,000.

14 Oct, 2020 @ 20:28 by Yahoo! Finance

On Wednesday, Cowen released the findings of a survey on how Gen Z and millennials are driving the shift in spending power, with the COVID-19 pandemic further dividing shopping preferences and attitudes among generational cohorts. The Final Round breaks down which companies are the winners amid this generational shift in shopping trends.

Most retail rent agreements are straightforward but that was before the coronavirus pandemic.

27 Jul, 2020 @ 16:40 by Yahoo! Finance

While technology undeniably benefits society, it can be a major disruptor for certain businesses Continue reading…

Analysis and trade direction are uploaded generally between noon and 1pm EST for most events. ALWAYS check back near market close for updates as the analysis can change by end of session.

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ANALYSIS:

StockJumpers trajectory analysis reveals a positive market reaction to the earnings release. We think they will beat, and show a favorable guidance for next quarter. The options have this priced in at an 8% move 

We are LONG for the event.

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TRADE PLAN:

ENTRY:  BUY – end of day
STOP LOSS:  5%
TAKE PROFIT: 8%
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UPDATE: (3:03PM) We remain biased long on the event.

POST RELEASE ACTION: we are setting a close at break-even

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NOTE: There is a significant amount of data behind the scenes in getting to the analysis in the tab above. Too much information for traders only confuses things – so this is striped down to only what it needed to make the best possible decision(s) on trading the trajectory.