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.
KB Home (NYSE:KBH) unveils its next round of earnings this Wednesday, June 23. Get prepared with Benzinga's ultimate preview for KB Home's Q2 earnings.
Net Income, Earnings, And Earnings Per Share
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 KB Home management projections, analysts predict EPS of $1.31 on revenue of $1.50 billion. KB Home reported a profit of $0.55 per share when it published results during the same quarter last year. Sales in that period totaled $913.97 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 report earnings in line when it publishes results Wednesday, earnings would be up 138.18%. Revenue would be up 64.12% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2021 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.92 | 0.93 | 0.54 | 0.50 |
| EPS Actual | 1.02 | 1.12 | 0.83 | 0.55 |
| Revenue Estimate | 1.21 B | 1.14 B | 893.24 M | 1.07 B |
| Revenue Actual | 1.14 B | 1.19 B | 999.01 M | 913.97 M |
Stock Performance
For a full 12 months, the return has risen by 27.81%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. KB Home 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.
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