Granite Point Mortgage's Earnings Outlook

Granite Point Mortgage GPMT announces its next round of earnings this Monday, November 09. Here is Benzinga's everything-that-matters guide for this Monday'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

Sell-side analysts expect Granite Point Mortgage's EPS to be near $0.18 on sales of $31.41 million. Granite Point Mortgage EPS in the same period a year ago totaled $0.34. Sales were $27.08 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 47.06% decline in the company's EPS figure. Revenue would be have grown 15.98% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.25 0.34 0.37 0.38
EPS Actual 0.25 0.32 0.34 0.34
Revenue Estimate 28.55 M 29.45 M 28.80 M 30.37 M
Revenue Actual 34.38 M 29.19 M 28.43 M 27.08 M

Stock Performance

Shares of Granite Point Mortgage were trading at $6.97 as of November 05. Over the last 52-week period, shares are down 61.64%. 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. Granite Point Mortgage is scheduled to hold the call at 10:00:00 ET and can be accessed here.

Posted In: Earnings