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 Thursday, November 05, MACOM Technology (NASDAQ: MTSI) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
Net Income, Earnings, 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 MACOM Technology reporting earnings of $0.38 per share on revenue of $146.05 million. In the same quarter last year, MACOM Technology reported EPS of $0.01 on revenue of $112.25 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to match the consensus estimate when it reports Thursday, EPS would be up 3700.0%. Revenue would be up 30.11% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 |
|---|---|---|---|---|
| EPS Estimate | 0.21 | 0.10 | 0.03 | 0 |
| EPS Actual | 0.33 | 0.17 | 0.07 | 0.01 |
| Revenue Estimate | 131.26 M | 122.67 M | 114.51 M | 110.17 M |
| Revenue Actual | 137.27 M | 126.42 M | 119.10 M | 112.25 M |
Stock Performance
For a full 12 months, the return has risen by 69.96%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. MACOM Technology is scheduled to hold the call at 17:00:00 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.