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.
Analog Devices (NASDAQ:ADI) announces its next round of earnings this Wednesday, February 17. Here is Benzinga's look at Analog Devices's Q1 earnings report.
What Are Earnings, Net Income, And Earnings Per Share?
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
Analog Devices EPS will likely be near $1.32 while revenue will be around $1.51 billion, according to analysts. In the same quarter last year, Analog Devices posted EPS of $1.03 on sales of $1.30 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
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.
The analyst consensus estimate would represent a 28.16% increase in the company's EPS figure. Revenue would be up 15.8% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.32 | 1.28 | 1.04 | 1 |
| EPS Actual | 1.44 | 1.36 | 1.08 | 1.03 |
| Revenue Estimate | 1.44 B | 1.43 B | 1.33 B | 1.30 B |
| Revenue Actual | 1.53 B | 1.46 B | 1.32 B | 1.30 B |
Stock Performance
For a full 12 months, the return has risen by 31.02%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. Analog Devices 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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