Market Overview

Earnings Outlook for RMR Group

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On Friday, November 20, RMR Group (NASDAQ: RMR) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

RMR Group EPS is expected to be around $0.39, according to sell-side analysts. Sales will likely be near $137.52 million. In the same quarter last year, RMR Group announced EPS of $0.59 on revenue of $159.24 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 Friday, earnings would be down 33.9%. Revenue would be down 13.64% from the same quarter last year. RMR Group's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.38 0.49 0.58 0.52
EPS Actual 0.38 0.46 0.57 0.59
Revenue Estimate 132.10 M 150.53 M 154.16 M 140.92 M
Revenue Actual 138.65 M 140.86 M 159.89 M 159.24 M

Stock Performance

Shares of RMR Group were trading at $31.12 as of November 18. Over the last 52-week period, shares are down 33.21%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

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

 

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Posted-In: Earnings