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, February 04, Motorola Solutions (NYSE:MSI) will release its latest earnings report. Decipher the announcement with Benzinga's help.
What Are Earnings, Net Income, And Earnings Per Share?
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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
Motorola Solutions EPS will likely be near $2.74 while revenue will be around $2.24 billion, according to analysts. In the same quarter last year, Motorola Solutions reported EPS of $2.94 on revenue of $2.38 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.
The Wall Street consensus estimate for earnings would represent a 6.8% decrease for the company. Revenue would be down 5.76% 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 | 1.76 | 1.21 | 1.28 | 2.78 |
| EPS Actual | 1.95 | 1.39 | 1.49 | 2.94 |
| Revenue Estimate | 1.82 B | 1.57 B | 1.66 B | 2.37 B |
| Revenue Actual | 1.87 B | 1.62 B | 1.66 B | 2.38 B |
Stock Performance
Shares of Motorola Solutions were trading at $178.86 as of February 02. Over the last 52-week period, shares are up 0.45%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Motorola Solutions 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.