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.
CF Industries Holdings (NYSE: CF) unveils its next round of earnings this Wednesday, November 04. Here is Benzinga's everything-that-matters guide for the earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
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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
CF Industries Holdings EPS is expected to be around $0.07, according to sell-side analysts. Sales will likely be near $885.24 million. CF Industries Holdings EPS in the same period a year ago totaled $0.29. Sales were $1.04 billion.
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.
If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 75.86%. Sales would be down 14.72% 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 | 0.65 | 0.25 | 0.26 | 0.37 |
| EPS Actual | 0.89 | 0.31 | 0.25 | 0.29 |
| Revenue Estimate | 1.15 B | 925.83 M | 1.03 B | 1.07 B |
| Revenue Actual | 1.20 B | 971.00 M | 1.05 B | 1.04 B |
Stock Performance
Shares of CF Industries Holdings were trading at $28.06 as of November 02. Over the last 52-week period, shares are down 41.5%. 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. CF Industries Holdings is scheduled to hold the call at 10:00:00 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.