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.
Malibu Boats (NASDAQ:MBUU) releases its next round of earnings this Tuesday, February 09. Here is Benzinga's essential guide to Malibu Boats's Q2 earnings report.
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
Wall Street expects EPS of $1.03 and sales around $189.80 million. In the same quarter last year, Malibu Boats reported earnings per share of $0.93 on revenue of $180.11 million.
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.
If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 10.75%. Sales would be up 5.38% on a year-over-year basis. Malibu Boats's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2020 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.87 | 0.12 | 0.98 | 0.70 |
| EPS Actual | 1.13 | 0.40 | 1.13 | 0.93 |
| Revenue Estimate | 177.48 M | 101.32 M | 185.03 M | 164.13 M |
| Revenue Actual | 180.98 M | 118.66 M | 182.31 M | 180.11 M |
Stock Performance
Shares of Malibu Boats were trading at $75.2 as of February 05. Over the last 52-week period, shares are up 61.91%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Malibu Boats 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.