Street Chatter: Analysts Weigh in on Chesapeake Energy, Verizon Communications, Ford Motor, and Cisco Systems

Strategic Insights -

Chesapeake Energy's first-quarter earnings exceeded analysts' expectations, with the company reporting a profit of $624 million, or $1.44 per share. Verizon Communications also reported a strong first-quarter, with a profit of $1.6 billion, or 56 cents per share. Meanwhile, Ford Motor's vehicle sales fell 6.6 percent in April, and Cisco Systems' calls are becoming increasingly active as earnings approach. These four companies are generating significant attention on Internet message boards, making them the focus of the latest "Street Chatter" report from Schaeffer's Investment Research.

Key Takeaways:

  • Chesapeake Energy's shares have moved above its 40-week moving average, a trendline it has not breached since its inception, and are looking to challenge former resistance at the 33.50 level.
  • Verizon Communications' shares have slipped lower despite initially positive reaction to its earnings report, and could face resistance at its 80-day moving average, as well as peak call open interest at the 32.50 level.
  • Ford Motor's 80-month and 160-month moving averages are poised for a bearish cross, suggesting a continued downtrend for the company's shares.
  • Cisco Systems' calls are becoming increasingly active as earnings approach, with peak call activity for the front three months of options residing at the May 22.50 strike, which the company has not approached on a technical basis since July 2004.
  • Analysts are expecting a profit of 24 cents per share from Cisco Systems, a penny better than last year's earnings, but WhisperNumber.com indicates that the company's "whisper" number resides at 27 cents per share.

Statistics:

  • Chesapeake Energy's first-quarter earnings exceeded analysts' expectations, with a profit of $624 million, or $1.44 per share.
  • Verizon Communications reported a profit of $1.6 billion, or 56 cents per share, exceeding analysts' expectations of 59 cents per share.
  • Ford Motor's vehicle sales fell 6.6 percent in April, with car sales advancing 8.3 percent and Ford-branded truck sales falling 15.5 percent.
  • Cisco Systems' earnings are expected to be 24 cents per share, a penny better than last year's earnings, but whispers estimate the company's earnings to be at 27 cents per share.

Sources:

  • Schaeffer's Investment Research (www.SchaeffersResearch.com)
  • Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter
  • Forbes and Barron's, which recognized Schaeffer's website as one of the leading information sources for stock and options traders
  • WhisperNumber.com, which provides earnings estimates for companies
  • Schaeffer's website, http://www.SchaeffersResearch.com, which provides free e-newsletters, including Opening View, Market Recap, and Monday Morning Outlook.