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Community Bank System Earnings Preview

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Community Bank System (NYSE: CBU) will be releasing its next round of earnings this Monday, October 26. For all of the relevant information, here is your guide for Monday's Q3 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

Based on management's projections, Community Bank System analysts model for earnings of $0.69 per share on sales of $149.98 million. In the same quarter last year, Community Bank System posted EPS of $0.84 on sales of $148.37 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 17.86% decrease in the company's earnings. Sales would be up 1.09% from the same quarter last year. 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 0.60 0.74 0.82 0.81
EPS Actual 0.76 0.77 0.83 0.84
Revenue Estimate 148.04 M 148.96 M 150.23 M 149.93 M
Revenue Actual 144.89 M 148.68 M 149.86 M 148.37 M

Stock Performance

Shares of Community Bank System were trading at $59.32 as of October 22. Over the last 52-week period, shares are down 12.31%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Community Bank System is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: Earnings