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.
Huntsman (NYSE:HUN) will be releasing its next round of earnings this Friday, February 12. For all of the relevant information, here is your guide for Friday's Q4 earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
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
Analysts expect Huntsman earnings of $0.46 per share. Revenue will likely be around $1.65 billion, according to the consensus estimate. In the same quarter last year, Huntsman reported EPS of $0.29 on revenue of $1.66 billion.
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.
If the company were to report earnings in line when it publishes results Friday, earnings would be up 58.62%. Sales would be down 0.42% 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 | 0.26 | -0.18 | 0.19 | 0.29 |
| EPS Actual | 0.32 | -0.14 | 0.29 | 0.29 |
| Revenue Estimate | 1.47 B | 1.13 B | 1.52 B | 1.61 B |
| Revenue Actual | 1.51 B | 1.25 B | 1.59 B | 1.66 B |
Stock Performance
Over the last 52-week period, shares are up 33.1%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Huntsman is scheduled to hold the call at 10:00:00 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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