Earnings Preview for GreenSky

GreenSky GSKY will be releasing its next round of earnings this Monday, November 09. For all of the relevant information, here is your guide for Monday's Q3 earnings announcement.

What Are Earnings, Net Income, 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

GreenSky earnings will be near $0.1 per share on sales of $149.97 million, according to analysts. In the same quarter last year, GreenSky reported earnings per share of $0.23 on sales of $153.41 million.

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

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 estimate would represent a 56.52% decline in the company's earnings. Revenue would have fallen 2.25% from the same quarter last year. Here is how the GreenSky's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of GreenSky were trading at $4.51 as of November 05. Over the last 52-week period, shares are down 41.33%. 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. GreenSky is scheduled to hold the call at 09:00:00 ET and can be accessed here.