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.
ADT (NYSE: ADT) releases its next round of earnings this Thursday, November 05. Here is Benzinga's essential guide to ADT's Q3 earnings report.
What Are Earnings, Net Income, And Earnings Per Share?
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 expects EPS of $0.15 and sales around $1.25 billion. ADT EPS in the same period a year ago totaled $0.02. Revenue was $1.30 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 Thursday, EPS would be up 850.0%. Revenue would be down 3.92% from the year-ago period. Here is how the ADT's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 2020 | Q1 2020 | Q4 2020 | Q3 2019 |
|---|---|---|---|---|
| EPS Estimate | 0.29 | 0.19 | 0.23 | 0.20 |
| EPS Actual | -0.07 | -0.09 | -0.03 | -0.02 |
| Revenue Estimate | 1.25 B | 1.23 B | 1.27 B | 1.28 B |
| Revenue Actual | 1.33 B | 1.37 B | 1.30 B | 1.30 B |
Stock Performance
Shares of ADT were trading at $6.73 as of November 03. Over the last 52-week period, shares are down 12.58%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. ADT is scheduled to hold the call at 17:00:00 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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