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.
Monroe Capital (NASDAQ:MRCC) releases its next round of earnings this Tuesday, March 02. Here is Benzinga's essential guide to Monroe Capital's Q4 earnings report.
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
Wall Street analysts see Monroe Capital reporting earnings of $0.24 per share on revenue of $12.83 million. In the same quarter last year, Monroe Capital announced EPS of $0.37 on revenue of $17.98 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
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 35.14% decrease in the company's earnings. Sales would be down 28.66% from the year-ago period. 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 | 0.27 | 0.28 | 0.35 | 0.35 |
| EPS Actual | 0.27 | 0.62 | 0.33 | 0.37 |
| Revenue Estimate | 13.47 M | 14.17 M | 16.46 M | 17.54 M |
| Revenue Actual | 13.38 M | 20.64 M | 15.00 M | 17.98 M |
Stock Performance
Shares of Monroe Capital were trading at $9.35 as of February 26. Over the last 52-week period, shares are down 8.23%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Monroe Capital is scheduled to hold the call at 11:00:00 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.