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 Wednesday, July 21, M&T Bank (NYSE:MTB) will release its latest earnings report. Check out Benzinga's preview to understand the implications.
Net Income, Earnings, And Earnings Per Share
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
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
M&T Bank EPS is expected to be around $3.6, according to sell-side analysts. Sales will likely be near $1.49 billion. M&T Bank reported a per-share profit of $1.76 when it published results during the same quarter last year. Sales in that period totaled $1.44 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
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.
The Wall Street consensus estimate for earnings would represent a 104.55% increase for the company. Revenue would be have grown 3.19% 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 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 3 | 3.03 | 2.60 | 1.59 |
| EPS Actual | 3.41 | 3.52 | 2.75 | 1.76 |
| Revenue Estimate | 1.49 B | 1.46 B | 1.46 B | 1.47 B |
| Revenue Actual | 1.49 B | 1.54 B | 1.46 B | 1.44 B |
Stock Performance
For a full 12 months, the return has risen by 28.24%. 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. M&T Bank is scheduled to hold the call at 11:00:00 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.