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.
Ross Stores (NASDAQ:ROST) announces its next round of earnings this Tuesday, March 02. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.
What Are Earnings, Net Income, 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 Ross Stores reporting earnings of $1.0 per share on revenue of $4.27 billion. In the same quarter last year, Ross Stores reported EPS of $1.26 on revenue of $4.41 billion.
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 analyst consensus estimate would represent a 20.63% decline in the company's EPS figure. Sales would be down 3.24% 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 | 0.61 | -0.26 | 0.06 | 1.25 |
| EPS Actual | 1.02 | 0.06 | -0.87 | 1.26 |
| Revenue Estimate | 3.43 B | 2.47 B | 2.12 B | 4.36 B |
| Revenue Actual | 3.75 B | 2.68 B | 1.84 B | 4.41 B |
Stock Performance
Over the last 52-week period, shares are up 8.99%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Ross Stores is scheduled to hold the call at 16:15:00 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.