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.
Trex Co (NYSE:TREX) announces its next round of earnings this Monday, February 22. Here is Benzinga's everything-that-matters guide for this Monday's Q4 earnings announcement.
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
Trex Co earnings will be near $0.36 per share on sales of $215.90 million, according to analysts. In the same quarter last year, Trex Co announced EPS of $0.61 on revenue of $164.77 million.
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 40.98% decline in the company's EPS figure. Sales would be up 31.03% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.37 | 0.65 | 0.61 | 0.51 |
| EPS Actual | 0.41 | 0.81 | 0.73 | 0.61 |
| Revenue Estimate | 221.65 M | 200.73 M | 196.94 M | 159.37 M |
| Revenue Actual | 231.50 M | 220.65 M | 200.40 M | 164.77 M |
Stock Performance
Shares of Trex Co were trading at $102.27 as of February 18. Over the last 52-week period, shares are up 100.95%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Trex Co is scheduled to hold the call at 17:00:00 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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