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.
Redhill Biopharma (NASDAQ:RDHL) announces its next round of earnings this Thursday, March 18. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.
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 are expecting Redhill Biopharma's loss per share to be near $0.24 on sales of $26.03 million. Redhill Biopharma earnings in the same period a year ago was $0.03 per share. Quarterly sales came in at $1.59 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 Thursday, quarterly profit would be down 900.0%. Revenue would be up 1537.11% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | -0.16 | -0.07 | -0.24 | -0.24 |
| EPS Actual | -0.05 | -0.04 | -0.05 | 0.03 |
| Revenue Estimate | 25.37 M | 22.99 M | 4.38 M | 2.15 M |
| Revenue Actual | 20.94 M | 20.90 M | 1.06 M | 1.59 M |
Stock Performance
Shares of Redhill Biopharma were trading at $8.02 as of March 16. Over the last 52-week period, shares are up 96.54%. 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. Redhill Biopharma 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.