Market Overview

Assured Guaranty's Earnings Outlook

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Assured Guaranty (NYSE: AGO) unveils its next round of earnings this Thursday, November 05. Here is Benzinga's everything-that-matters guide for the 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 predict Assured Guaranty will report earnings of $0.66 per share on revenue of $193.50 million. In the same quarter last year, Assured Guaranty reported EPS of $0.79 on revenue of $123.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 16.46% decrease in the company's earnings. Revenue would be up 57.32% from the year-ago period. 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 0.69 0.76 0.78 0.76
EPS Actual 1.36 0.36 0.90 0.79
Revenue Estimate 215.20 M 218.00 M 204.00 M 205.95 M
Revenue Actual 121.00 M 103.00 M 123.00 M 123.00 M

Stock Performance

Shares of Assured Guaranty were trading at $28.105 as of November 03. Over the last 52-week period, shares are down 43.89%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Assured Guaranty is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings