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.
On Thursday, May 13, Globant (NYSE:GLOB) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
Net Income, Earnings, And Earnings Per Share
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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
Wall Street expects EPS of $0.8 and sales around $259.30 million. Globant reported a per-share profit of $0.64 when it published results during the same quarter last year. Sales in that period totaled $191.57 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 25.0%. Sales would be up 35.35% on a year-over-year basis. 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 | 0.67 | 0.58 | 0.48 | 0.62 |
| EPS Actual | 0.70 | 0.60 | 0.51 | 0.64 |
| Revenue Estimate | 222.34 M | 203.76 M | 179.90 M | 188.79 M |
| Revenue Actual | 232.64 M | 207.22 M | 182.71 M | 191.57 M |
Stock Performance
Shares of Globant were trading at $213.34 as of May 11. Over the last 52-week period, shares are up 85.41%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Globant is scheduled to hold the call at 16:30:00 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.