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.
American International Gr (NYSE:AIG) unveils its next round of earnings this Tuesday, February 16. Get prepared with Benzinga's ultimate preview for American International Gr's Q4 earnings.
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
American International Gr EPS will likely be near $0.93 while revenue will be around $10.80 billion, according to analysts. American International Gr EPS in the same period a year ago totaled $1.03. Revenue was $11.81 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 Tuesday, earnings would be down 9.71%. Sales would have fallen 8.59% from the same quarter last year. 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 | 0.54 | 0.50 | 0.72 | 1 |
| EPS Actual | 0.81 | 0.66 | 0.11 | 1.03 |
| Revenue Estimate | 11.00 B | 11.13 B | 11.45 B | 11.90 B |
| Revenue Actual | 10.22 B | 9.40 B | 14.44 B | 11.81 B |
Stock Performance
Shares of American International Gr were trading at $41.62 as of February 11. Over the last 52-week period, shares are down 15.53%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. American International Gr is scheduled to hold the call at 09:00:00 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.
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