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.
Emergent BioSolutions (NYSE:EBS) announces its next round of earnings this Thursday, April 29. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 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 Emergent BioSolutions reporting earnings of $1.12 per share on revenue of $358.47 million. Emergent BioSolutions EPS in the same period a year ago totaled $0.01. Revenue was $192.50 million.
Why Analyst Estimates And Earnings Surprises Are Important
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 report earnings in line when it publishes results Thursday, earnings would be up 11100.0%. Revenue would be have grown 86.22% from the same quarter last year. 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 | 3.19 | 2.12 | 0.64 | 0.01 |
| EPS Actual | 3.67 | 2.19 | 1.98 | 0.01 |
| Revenue Estimate | 563.60 M | 437.93 M | 294.73 M | 199.47 M |
| Revenue Actual | 583.00 M | 385.20 M | 394.70 M | 192.50 M |
Stock Performance
Shares of Emergent BioSolutions were trading at $63.73 as of April 27. Over the last 52-week period, shares are down 14.33%. 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. Emergent BioSolutions is scheduled to hold the call at 17:00:00 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.