27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Virtus Investment (NASDAQ: VRTS) unveils its next round of earnings this Friday, October 23. Get prepared with Benzinga's ultimate preview for Virtus Investment's Q3 earnings.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Sell-side analysts expect Virtus Investment's EPS to be near $4.32 on sales of $134.42 million. Virtus Investment earnings in the same period a year ago was $4.03 per share. Quarterly sales came in at $145.96 million.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to match the consensus estimate when it reports Friday, earnings would be up 7.2%. Sales would be down 7.9% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 2020 | Q1 2020 | Q4 2020 | Q3 2019 |
|---|---|---|---|---|
| EPS Estimate | 2.99 | 3.10 | 4.09 | 3.76 |
| EPS Actual | 3.24 | 3.32 | 4.32 | 4.03 |
| Revenue Estimate | 112.36 M | 120.44 M | 128.42 M | 147.20 M |
| Revenue Actual | 132.89 M | 144.57 M | 146.08 M | 145.96 M |
Stock Performance
Shares of Virtus Investment were trading at $166.75 as of October 21. Over the last 52-week period, shares are up 64.15%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Virtus Investment is scheduled to hold the call at 10:00:00 ET and can be accessed here.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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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