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.
On Tuesday, February 23, AtriCure (NASDAQ:ATRC) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
Net Income, Earnings, And Earnings Per Share
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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
Wall Street analysts see AtriCure reporting a quarterly loss of $0.28 per share on sales of $58.10 million. In the same quarter last year, AtriCure reported EPS of $0.37 on revenue of $61.32 million.
Why Analyst Estimates And Earnings Surprises Are Important
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.
If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be up 24.32%. Revenue would have fallen 5.25% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | -0.34 | -0.61 | -0.41 | -0.41 |
| EPS Actual | -0.11 | -0.38 | -0.36 | -0.37 |
| Revenue Estimate | 49.37 M | 35.45 M | 55.50 M | 59.50 M |
| Revenue Actual | 54.76 M | 40.82 M | 53.23 M | 61.32 M |
Stock Performance
Shares of AtriCure were trading at $65.48 as of February 19. Over the last 52-week period, shares are up 69.02%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. AtriCure is scheduled to hold the call at 16:30:00 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.