20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Mohawk Industries (NYSE:MHK) unveils its next round of earnings this Thursday, April 29. Here is Benzinga's everything-that-matters guide for the earnings announcement.
Net Income, Earnings, And Earnings Per Share
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
Based on management's projections, Mohawk Industries analysts model for earnings of $2.81 per share on sales of $2.61 billion. In the same quarter last year, Mohawk Industries posted EPS of $1.66 on sales of $2.29 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.
If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 69.28%. Sales would be up 14.17% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 2.87 | 2.10 | -0.09 | 1.66 |
| EPS Actual | 3.54 | 3.26 | 0.37 | 1.66 |
| Revenue Estimate | 2.49 B | 2.47 B | 1.86 B | 2.29 B |
| Revenue Actual | 2.64 B | 2.58 B | 2.05 B | 2.29 B |
Stock Performance
Shares of Mohawk Industries were trading at $209.23 as of April 27. Over the last 52-week period, shares are up 136.57%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Mohawk Industries is scheduled to hold the call at 11:00:00 ET and can be accessed here.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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