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.
Fortinet (NASDAQ:FTNT) announces its next round of earnings this Thursday, February 04. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.
Net Income, Earnings, 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 management's projections, Fortinet analysts model for earnings of $0.96 per share on sales of $722.43 million. Fortinet EPS in the same period a year ago totaled $0.76. Sales were $614.40 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 match the consensus estimate when it reports Thursday, earnings would be up 26.32%. Revenue would be up 17.58% on a year-over-year basis. 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 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.78 | 0.65 | 0.51 | 0.70 |
| EPS Actual | 0.88 | 0.82 | 0.60 | 0.76 |
| Revenue Estimate | 639.02 M | 599.04 M | 556.99 M | 603.34 M |
| Revenue Actual | 651.10 M | 615.50 M | 576.90 M | 614.40 M |
Stock Performance
Shares of Fortinet were trading at $153.81 as of February 02. Over the last 52-week period, shares are up 24.52%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Fortinet is scheduled to hold the call at 16:30:00 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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