27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
Regal Beloit (NYSE:RBC) will be releasing its next round of earnings this Monday, May 03. For all of the relevant information, here is your guide for Monday's Q1 earnings announcement.
What Are Earnings, Net Income, 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 Regal Beloit management projections, analysts predict EPS of $1.71 on revenue of $784.93 million. Regal Beloit EPS in the same period a year ago totaled $1.31. Sales were $734.20 million.
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 30.53%. Sales would be up 6.91% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.59 | 1.20 | 0.67 | 1.09 |
| EPS Actual | 1.78 | 1.73 | 0.95 | 1.31 |
| Revenue Estimate | 739.46 M | 704.21 M | 645.75 M | 751.48 M |
| Revenue Actual | 780.50 M | 758.20 M | 634.10 M | 734.20 M |
Stock Performance
Shares of Regal Beloit were trading at $148.17 as of April 29. Over the last 52-week period, shares are up 116.7%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Regal Beloit is scheduled to hold the call at 10:00:00 ET and can be accessed here.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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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