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.
Coty (NYSE: COTY) will be releasing its next round of earnings this Friday, November 06. For all of the relevant information, here is your guide for Friday's Q1 earnings announcement.
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
Coty EPS will likely be near $0.05 while revenue will be around $1.08 billion, according to analysts. Coty earnings in the same period a year ago was $0.07 per share. Quarterly sales came in at $1.94 billion.
Why Analyst Estimates And Earnings Surprises Are Important
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 report earnings in line when it publishes results Friday, earnings would be down 171.43%. Revenue would have fallen 44.42% 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 | -0.11 | -0.01 | 0.24 | 0.06 |
| EPS Actual | -0.46 | -0.08 | 0.27 | 0.07 |
| Revenue Estimate | 1.34 B | 1.53 B | 2.34 B | 1.96 B |
| Revenue Actual | 560.40 M | 1.53 B | 2.35 B | 1.94 B |
Stock Performance
Over the past 52-week period, shares of Coty have declined 75.55%. 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. Coty 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.