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.
Luxfer Holdings (NYSE:LXFR) unveils its next round of earnings this Tuesday, February 23. Get prepared with Benzinga's ultimate preview for Luxfer Holdings's Q4 earnings.
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
Sell-side analysts expect Luxfer Holdings's EPS to be near $0.22 on sales of $89.25 million. Luxfer Holdings earnings in the same period a year ago was $0.22 per share. Quarterly sales came in at $99.50 million.
Why Analyst Estimates And Earnings Surprises Are Important
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.
The analyst consensus estimate would represent a 0% decrease in the company's earnings. Revenue would be down 10.3% from the year-ago period. The company'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 | 0.19 | 0.14 | 0.26 | 0.24 |
| EPS Actual | 0.25 | 0.17 | 0.30 | 0.22 |
| Revenue Estimate | 89.77 M | 85.15 M | 101.70 M | 96.37 M |
| Revenue Actual | 90.40 M | 89.50 M | 103.80 M | 99.50 M |
Stock Performance
Shares of Luxfer Holdings were trading at $18.66 as of February 19. Over the last 52-week period, shares are up 17.84%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Luxfer Holdings is scheduled to hold the call at 08:30:00 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.