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 20, Deckers Outdoor (NYSE:DECK) 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 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
Based on management's projections, Deckers Outdoor analysts model for earnings of $0.64 per share on sales of $435.21 million. Deckers Outdoor EPS in the same period a year ago totaled $0.57. Sales were $374.91 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.
The Wall Street estimate would represent a 12.28% increase in the company's earnings. Sales would be up 16.08% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:
| Quarter | Q3 2021 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 7.07 | 2.47 | -1.11 | 0.21 |
| EPS Actual | 8.99 | 3.58 | -0.28 | 0.57 |
| Revenue Estimate | 963.38 M | 541.50 M | 256.69 M | 374.19 M |
| Revenue Actual | 1.08 B | 623.52 M | 283.17 M | 374.91 M |
Stock Performance
Over the last 52-week period, shares of Deckers Outdoor are up 92.17%.
Do not be surprised to see the stock move on comments made during its conference call. Deckers Outdoor 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.