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.
Great Western Bancorp (NYSE:GWB) announces its next round of earnings this Wednesday, January 27. Here is Benzinga's everything-that-matters guide for this Wednesday'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
Based on Great Western Bancorp management projections, analysts predict EPS of $0.39 on revenue of $115.56 million. Great Western Bancorp earnings in the same period a year ago was $0.77 per share. Quarterly sales came in at $120.91 million.
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 report earnings in line when it publishes results Wednesday, quarterly profit would be down 49.35%. Revenue would be down 4.42% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:
| Quarter | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.4 | 0.2 | 0.58 | 0.77 |
| EPS Actual | 0.2 | 0.1 | 0.52 | 0.77 |
| Revenue Estimate | 121.13 M | 116.92 M | 118.85 M | 122.75 M |
| Revenue Actual | 102.07 M | 94.57 M | 101.90 M | 120.91 M |
Stock Performance
Shares of Great Western Bancorp were trading at $23.52 as of January 25. Over the last 52-week period, shares are down 20.27%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Great Western Bancorp is scheduled to hold the call at 08:30:00 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.