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.
Looking at Q1, Fair Isaac (NYSE:FICO) earned $87.39 million, a 2.22% increase from the preceding quarter. Fair Isaac's sales decreased to $312.41 million, a 16.55% change since Q4. In Q4, Fair Isaac brought in $374.36 million in sales but only earned $85.49 million.
What Is ROCE?
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Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q1, Fair Isaac posted an ROCE of 0.27%.
Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows Fair Isaac is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and earnings per share growth.
In Fair Isaac's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.
Q1 Earnings Recap
Fair Isaac reported Q1 earnings per share at $2.74/share, which beat analyst predictions of $2.27/share.
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.