Market Overview

Earnings Outlook for Shaw Communications

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Shaw Communications (NYSE: SJR) announces its next round of earnings this Friday, October 30. Here is Benzinga's everything-that-matters guide for this Friday's Q4 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

Analysts expect Shaw Communications earnings of $0.22 per share. Revenue will likely be around $1.01 billion, according to the consensus estimate. Shaw Communications EPS in the same period a year ago totaled $0.24. Revenue was $1.03 billion.

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 consensus estimate for earnings would represent a 8.33% decrease for the company. Revenue would be down 1.75% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.22 0.22 0.22 0.22
EPS Actual 0.27 0.23 0.24 0.24
Revenue Estimate 1.01 B 1.01 B 1.01 B 1.01 B
Revenue Actual 970.88 M 1.04 B 1.06 B 1.03 B

Stock Performance

Over the last 52-week period, shares are down 19.78%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Shaw Communications is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings