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.
Cigna (NYSE:CI) releases its next round of earnings this Friday, May 07. Get the latest predictions in Benzinga's essential guide to the company's Q1 earnings report.
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
Analysts covering Cigna modeled for quarterly EPS of $4.38 on revenue of $40.24 billion. In the same quarter last year, Cigna reported EPS of $4.69 on revenue of $38.39 billion.
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 match the consensus estimate, earnings would be down 6.61%. Revenue would be up 4.81% from the year-ago period. Cigna'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 | 3.68 | 4.24 | 5.15 | 4.35 |
| EPS Actual | 3.51 | 4.41 | 5.81 | 4.69 |
| Revenue Estimate | 39.99 B | 39.18 B | 37.75 B | 37.18 B |
| Revenue Actual | 41.67 B | 40.80 B | 39.20 B | 38.39 B |
Stock Performance
Over the last 52-week period, shares are up 36.27%. 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. Cigna is scheduled to hold the call at 08:30:00 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.