20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
On Thursday, July 15, Home BancShares (NASDAQ:HOMB) will release its latest earnings report. Check out Benzinga's preview to understand the implications.
Net Income, Earnings, 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
Home BancShares EPS is expected to be around $0.46, according to sell-side analysts. Sales will likely be near $174.31 million. In the same quarter last year, Home BancShares reported EPS of $0.38 on revenue of $173.69 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 Thursday, quarterly profit would be up 21.05%. Sales would be up 0.36% on a year-over-year basis. Home BancShares's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.43 | 0.4 | 0.39 | 0.26 |
| EPS Actual | 0.55 | 0.5 | 0.42 | 0.38 |
| Revenue Estimate | 172.47 M | 172.08 M | 172.87 M | 165.62 M |
| Revenue Actual | 193.36 M | 181.91 M | 176.09 M | 173.69 M |
Stock Performance
For a full 12 months, the return has risen by 45.52%. 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. Home BancShares is scheduled to hold the call at 14:00:00 ET and can be accessed here.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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