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.
Compass Diversified Hldgs (NYSE:CODI) 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
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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 expects EPS of $0.38 and sales around $404.53 million. Compass Diversified Hldgs's loss in the same period a year ago was $0.26 per share. Quarterly sales came in at $333.45 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 match the consensus estimate when it reports Thursday, EPS would be up 246.15%. Revenue would be have grown 21.32% from the same quarter last year. Compass Diversified Hldgs's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.37 | 0.27 | 0.06 | 0.19 |
| EPS Actual | 0.55 | 0.08 | -0.30 | -0.26 |
| Revenue Estimate | 429.29 M | 367.45 M | 281.30 M | 340.25 M |
| Revenue Actual | 474.78 M | 418.90 M | 333.63 M | 333.45 M |
Stock Performance
Over the last 52-week period, shares are up 25.44%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Compass Diversified Hldgs 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.