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, Sierra Wireless (NASDAQ:SWIR) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
What Are Earnings, Net Income, And Earnings Per Share?
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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
Analysts are expecting Sierra Wireless to report a loss of $0.26 per share. Revenue will likely be around $116.23 million, according to the consensus estimate. In the same quarter last year, Sierra Wireless reported a loss per share of $0.08 on sales of $174.30 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, earnings would be down 225.0%. Sales would be down 33.32% on a year-over-year basis. 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 | -0.15 | -0.35 | -0.19 | -0.05 |
| EPS Actual | -0.33 | -0.30 | -0.41 | -0.08 |
| Revenue Estimate | 158.63 M | 143.27 M | 157.68 M | 170.88 M |
| Revenue Actual | 180.30 M | 144.06 M | 157.58 M | 174.30 M |
Stock Performance
Shares of Sierra Wireless were trading at $18.8 as of February 19. Over the last 52-week period, shares are up 122.36%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Sierra Wireless is scheduled to hold the call at 17:30:00 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.