Market Overview

Earnings Preview for Crane

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Crane (NYSE: CR) releases its next round of earnings this Monday, October 26. Here is Benzinga's essential guide to Crane's Q3 earnings report.

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

Wall Street analysts see Crane reporting earnings of $0.79 per share on revenue of $670.69 million. Crane reported a profit of $1.4 per share when it published results during the same quarter last year. Sales in that period totaled $772.30 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 43.57%. Sales would be down 13.16% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.45 1.25 1.57 1.54
EPS Actual 0.64 1.15 1.58 1.40
Revenue Estimate 623.02 M 820.76 M 824.22 M 802.38 M
Revenue Actual 677.90 M 797.90 M 837.50 M 772.30 M

Stock Performance

Shares of Crane were trading at $55.67 as of October 22. Over the last 52-week period, shares are down 32.94%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

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

 

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Posted-In: Earnings