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.
Neenah (NYSE:NP) announces its next round of earnings this Wednesday, February 17. Here is Benzinga's everything-that-matters guide for this Wednesday'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 Neenah earnings of $0.49 per share. Revenue will likely be around $193.05 million, according to the consensus estimate. In the same quarter last year, Neenah reported earnings per share of $0.87 on sales of $213.60 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
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 match the consensus estimate, earnings would be down 43.68%. Revenue would be down 9.62% from the same quarter last year. Neenah's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.26 | -0.12 | 0.90 | 0.80 |
| EPS Actual | 0.55 | -0.08 | 1.12 | 0.87 |
| Revenue Estimate | 182.87 M | 154.03 M | 231.83 M | 222.99 M |
| Revenue Actual | 190.70 M | 161.40 M | 233.60 M | 213.60 M |
Stock Performance
Over the last 52-week period, shares are down 12.78%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Neenah is scheduled to hold the call at 11:00:00 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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