Market Overview

Welbilt's Earnings: A Preview

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Welbilt (NYSE: WBT) announces its next round of earnings this Tuesday, November 03. Here is Benzinga's look at Welbilt's Q3 earnings report.

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

Wall Street analysts see Welbilt reporting a quarterly loss of $0.01 per share on sales of $271.02 million. Welbilt reported a profit of $0.22 per share when it published results during the same quarter last year. Sales in that period totaled $410.50 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 104.55% decline in the company's EPS figure. Revenue would be down 33.98% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.13 0.01 0.18 0.25
EPS Actual -0.07 0.01 0.19 0.22
Revenue Estimate 204.05 M 325.52 M 398.75 M 423.05 M
Revenue Actual 206.00 M 328.90 M 381.80 M 410.50 M

Stock Performance

Shares of Welbilt were trading at $6.08 as of October 29. Over the last 52-week period, shares are down 65.18%. 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. Welbilt is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: Earnings