Market Overview

Azul Earnings Preview

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Azul (NYSE: AZUL) releases its next round of earnings this Monday, November 16. Here is Benzinga's essential guide to Azul's Q3 earnings report.

Net Income, Earnings, 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

Based on management's projections, Azul analysts modeled for a loss of $1.15 per share on sales of $165.93 million. Azul reported a profit of $0.32 per share when it published results during the same quarter last year. Sales in that period totaled $763.48 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

If the company were to report earnings in line when it publishes results Monday, earnings would be down 459.38%. Revenue would be down 78.27% from the same quarter last year. The company'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 -1.22 0.24 0.92 0.69
EPS Actual -0.44 -0.37 0.23 0.32
Revenue Estimate 94.82 M 547.45 M 723.34 M 778.61 M
Revenue Actual 74.82 M 633.40 M 780.46 M 763.48 M

Stock Performance

Over the past 52-week period, shares of Azul have declined 56.43%.

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

 

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Posted-In: Earnings