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.
Telefonaktiebolaget L M (NASDAQ:ERIC) announces its next round of earnings this Wednesday, April 21. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.
Net Income, Earnings, And Earnings Per Share
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
Based on management's projections, Telefonaktiebolaget L M analysts model for earnings of $0.14 per share on sales of $6.51 billion. In the same quarter last year, Telefonaktiebolaget L M reported earnings per share of $0.07 on revenue of $5.12 billion.
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.
If the company were to match the consensus estimate, earnings would be up 100.0%. Sales would be up 27.05% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.21 | 0.16 | 0.07 | 0.08 |
| EPS Actual | 0.27 | 0.20 | 0.08 | 0.07 |
| Revenue Estimate | 7.75 B | 6.44 B | 5.56 B | 5.38 B |
| Revenue Actual | 8.08 B | 6.48 B | 5.74 B | 5.12 B |
Stock Performance
Shares of Telefonaktiebolaget L M were trading at $13.74 as of April 19. Over the last 52-week period, shares are up 64.35%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Telefonaktiebolaget L M is scheduled to hold the call at 03:00:00 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.
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