Market Overview

Carriage Services Earnings Preview

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Carriage Services (NYSE: CSV) will be releasing its next round of earnings this Tuesday, October 27. For all of the relevant information, here is your guide for Tuesday'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

Carriage Services EPS is expected to be around $0.34, according to sell-side analysts. Sales will likely be near $74.80 million. In the same quarter last year, Carriage Services posted EPS of $0.28 on sales of $66.12 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Wall Street estimate would represent a 21.43% increase in the company's earnings. Sales would be up 13.12% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.34 0.33 0.37 0.30
EPS Actual 0.45 0.35 0.28 0.28
Revenue Estimate 72.90 M 71.52 M 71.24 M 65.50 M
Revenue Actual 77.48 M 77.49 M 71.15 M 66.12 M

Stock Performance

Shares of Carriage Services were trading at $24.71 as of October 23. Over the last 52-week period, shares are down 8.92%. 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. Carriage Services is scheduled to hold the call at 10:30:00 ET and can be accessed here.

 

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Posted-In: Earnings