Earnings Preview for Altra Industrial Motion

Altra Industrial Motion AIMC announces its next round of earnings this Friday, October 23. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

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

Sell-side analysts expect Altra Industrial Motion's EPS to be near $0.46 on sales of $393.82 million. Altra Industrial Motion earnings in the same period a year ago was $0.69 per share. Quarterly sales came in at $442.90 million.

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.

If the company were to report earnings in line when it publishes results Friday, earnings would be down 33.33%. Revenue would be down 11.08% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.31 0.47 0.64 0.66
EPS Actual 0.60 0.65 0.66 0.69
Revenue Estimate 365.18 M 406.19 M 440.80 M 443.71 M
Revenue Actual 400.80 M 434.20 M 441.90 M 442.90 M

Stock Performance

Shares of Altra Industrial Motion were trading at $39.34 as of October 21. Over the last 52-week period, shares are up 34.12%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Altra Industrial Motion is scheduled to hold the call at 10:00:00 ET and can be accessed here.

Posted In: Earnings