Essential Utilities WTRG will be releasing its next round of earnings this Tuesday, November 03. 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
Based on Essential Utilities management projections, analysts predict EPS of $0.23 on revenue of $346.57 million. Essential Utilities reported a profit of $0.48 per share when it published results during the same quarter last year. Sales in that period totaled $243.63 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 analyst consensus estimate would represent a 52.08% decrease in the company's earnings. Sales would be up 42.25% from the same quarter last year. 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 | 0.22 | 0.57 | 0.32 | 0.43 |
| EPS Actual | 0.29 | 0.60 | 0.34 | 0.48 |
| Revenue Estimate | 371.24 M | 242.28 M | 226.00 M | 281.23 M |
| Revenue Actual | 384.47 M | 255.59 M | 226.04 M | 243.63 M |
Stock Performance
Shares of Essential Utilities were trading at $41.27 as of October 29. Over the last 52-week period, shares are down 7.11%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Essential Utilities is scheduled to hold the call at 11:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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