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.
Theravance Biopharma (NASDAQ:TBPH) releases its next round of earnings this Tuesday, February 23. Here is Benzinga's essential guide to Theravance Biopharma's Q4 earnings report.
Net Income, Earnings, 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
Sell-side analysts are expecting Theravance Biopharma's loss per share to be near $1.02 on sales of $20.85 million. In the same quarter last year, Theravance Biopharma announced EPS of $1.17 on revenue of $29.50 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.
The Wall Street estimate would represent a 12.82% increase in the company's earnings. Sales would be down 29.32% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | -0.97 | 0.98 | -1.07 | -1.13 |
| EPS Actual | -1.16 | -1 | -1.14 | -1.17 |
| Revenue Estimate | 18.58 M | 19.64 M | 18.13 M | 16.84 M |
| Revenue Actual | 18.26 M | 15.01 M | 19.86 M | 29.50 M |
Stock Performance
Over the last 52-week period, shares are down 18.95%. 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. Theravance Biopharma is scheduled to hold the call at 17:00:00 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.