27% profit every 20 days?
This is what Nic Chahine averages with his option 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.
On Friday, October 30, Phillips 66 Partners (NYSE: PSXP) will release its latest earnings report. Here is Benzinga's outlook for the company.
What Are Earnings, Net Income, And Earnings Per Share?
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Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Wall Street analysts see Phillips 66 Partners reporting earnings of $0.84 per share on sales of $385.43 million. In the same quarter last year, Phillips 66 Partners reported earnings per share of $1.15 on revenue of $411.00 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
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.
The analyst consensus estimate would represent a 26.96% decrease in the company's earnings. Sales would be down 6.22% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 2020 | Q1 2020 | Q4 2020 | Q3 2019 |
|---|---|---|---|---|
| EPS Estimate | 0.74 | 0.93 | 0.96 | 0.97 |
| EPS Actual | 1.05 | 0.93 | 1.06 | 1.15 |
| Revenue Estimate | 365.82 M | 411.79 M | 418.15 M | 405.49 M |
| Revenue Actual | 430.00 M | 404.00 M | 432.00 M | 411.00 M |
Stock Performance
Shares of Phillips 66 Partners were trading at $24.64 as of October 28. Over the last 52-week period, shares are down 58.54%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Phillips 66 Partners is scheduled to hold the call at 14:00:00 ET and can be accessed here.
27% profit every 20 days?
This is what Nic Chahine averages with his option 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.