Earnings Preview: BlackRock Capital Inv

On Wednesday, November 04, BlackRock Capital Inv BKCC will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

BlackRock Capital Inv earnings will be near $0.12 per share on sales of $17.09 million, according to analysts. In the same quarter last year, BlackRock Capital Inv reported EPS of $0.14 on revenue of $19.96 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.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 14.29%. Revenue would have fallen 14.36% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of BlackRock Capital Inv were trading at $2.43 as of November 02. Over the last 52-week period, shares are down 50.5%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

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