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.
RenaissanceRe Holdings (NYSE:RNR) will be releasing its next round of earnings this Tuesday, January 26. For all of the relevant information, here is your guide for Tuesday's Q4 earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
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
Based on RenaissanceRe Holdings management projections, analysts predict EPS of $1.27 on revenue of $1.26 billion. In the same quarter last year, RenaissanceRe Holdings reported earnings per share of $0.52 on revenue of $1.10 billion.
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 Tuesday, earnings would be down 344.23%. Revenue would be have grown 14.03% from the same quarter last year. RenaissanceRe Holdings's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.09 | 2.38 | 4.16 | 0.75 |
| EPS Actual | -2.64 | 4.06 | 0.76 | 0.52 |
| Revenue Estimate | 1.27 B | 1.04 B | 1.10 B | 1.07 B |
| Revenue Actual | 1.33 B | 1.55 B | 896.26 M | 1.10 B |
Stock Performance
Shares of RenaissanceRe Holdings were trading at $155.01 as of January 22. Over the last 52-week period, shares are down 19.3%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. RenaissanceRe Holdings is scheduled to hold the call at 11:00:00 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.
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