Preview: Banco Santander Mexico's Earnings

Banco Santander Mexico BSMX unveils its next round of earnings this Wednesday, October 28. Get prepared with Benzinga's ultimate preview for Banco Santander Mexico's Q3 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Banco Santander Mexico earnings will be near $0.13 per share on sales of $1.01 billion, according to analysts. In the same quarter last year, Banco Santander Mexico reported earnings per share of $0.13 on revenue of $1.36 billion.

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 0% change in company's EPS figure. Revenue would be down 25.68% on a year-over-year basis. 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 0.14 0.21 0.21 0.20
EPS Actual 0.03 0.04 0.04 0.13
Revenue Estimate 1.01 B 1.13 B 1.13 B 1.13 B
Revenue Actual 880.69 M 1.08 B 1.12 B 1.36 B

Stock Performance

Shares of Banco Santander Mexico were trading at $3.88 as of October 26. Over the last 52-week period, shares are down 43.53%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

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

Posted In: Earnings