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.
Hub Group (NASDAQ:HUBG) releases its next round of earnings this Thursday, February 04. Here is Benzinga's essential guide to Hub Group's Q4 earnings report.
Net Income, Earnings, 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
Hub Group EPS is expected to be around $0.66, according to sell-side analysts. Sales will likely be near $927.13 million. Hub Group EPS in the same period a year ago totaled $0.84. Sales were $900.68 million.
Why Analyst Estimates And Earnings Surprises Are Important
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.
The analyst consensus estimate would represent a 21.43% decrease in the company's earnings. Revenue would be have grown 2.94% from the same quarter last year. The company'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 | 0.63 | 0.23 | 0.60 | 0.83 |
| EPS Actual | 0.74 | 0.60 | 0.47 | 0.84 |
| Revenue Estimate | 877.71 M | 780.32 M | 873.88 M | 931.08 M |
| Revenue Actual | 924.81 M | 779.24 M | 838.86 M | 900.68 M |
Stock Performance
Over the last 52-week period, shares are up 1.71%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. Hub Group 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.