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Market Overview

StoneCastle Financial's Earnings: A Preview

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On Thursday, November 12, StoneCastle Financial (NASDAQ: BANX) will release its latest earnings report. Benzinga's outlook for StoneCastle Financial is included in the following report.

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

StoneCastle Financial EPS is expected to be around $0.43, according to sell-side analysts. Sales will likely be near $4.35 million. In the same quarter last year, StoneCastle Financial posted EPS of $0.38 on sales of $3.96 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 Thursday, EPS would be up 13.16%. Sales would be up 9.82% on a year-over-year basis. StoneCastle Financial's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.38 0.40 0.40 0.38
EPS Actual 0.41 0.39 0.41 0.38
Revenue Estimate 3.91 M 4.14 M 4.12 M 4.06 M
Revenue Actual 4.02 M 3.69 M 4.12 M 3.96 M

Stock Performance

Shares of StoneCastle Financial were trading at $19.2 as of November 10. Over the last 52-week period, shares are down 16.7%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. StoneCastle Financial is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings