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 Monday, November 02, Kennametal (NYSE: KMT) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
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
Analysts expect Kennametal earnings of $0.06 per share. Revenue will likely be around $381.80 million, according to the consensus estimate. Kennametal earnings in the same period a year ago was $0.17 per share. Quarterly sales came in at $518.09 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 64.71% decrease in the company's earnings. Revenue would be down 26.31% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2019 |
|---|---|---|---|---|
| EPS Estimate | 0.12 | 0.32 | 0.20 | 0.29 |
| EPS Actual | 0.15 | 0.46 | 0.17 | 0.17 |
| Revenue Estimate | 399.84 M | 515.88 M | 520.53 M | 539.75 M |
| Revenue Actual | 379.05 M | 483.08 M | 505.08 M | 518.09 M |
Stock Performance
Shares of Kennametal were trading at $30.56 as of October 29. Over the last 52-week period, shares are down 10.93%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Kennametal is scheduled to hold the call at 08:00:00 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.