Enterprise Finl Servs (NASDAQ:EFSC) announces its next round of earnings this Monday, January 25. Here is Benzinga’s everything-that-matters guide for this Monday’s Q4 earnings announcement.
What Are Earnings, Net Income, 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
Enterprise Finl Servs EPS is expected to be around $0.69, according to sell-side analysts. Sales will likely be near $82.02 million. In the same quarter last year, Enterprise Finl Servs reported EPS of $1.09 on revenue of $76.03 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 match the consensus estimate when it reports Monday, earnings would be down 36.7%. Revenue would be up 7.88% from the year-ago period. Here is how the company’s reported EPS has compared to analyst estimates in the past:
|Quarter||Q3 2020||Q2 2020||Q1 2020||Q4 2020|
|Revenue Estimate||79.45 M||75.87 M||72.22 M||77.20 M|
|Revenue Actual||75.98 M||75.79 M||76.78 M||76.03 M|
Over the last 52-week period, shares are down 18.86%. Given that these returns are generally negative, long-term shareholders won’t be happy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Enterprise Finl Servs is scheduled to hold the call at 11:00:00 ET and can be accessed here.