Earnings Outlook for GreenTree Hospitality Gr

GreenTree Hospitality Gr GHG unveils its next round of earnings this Wednesday, December 02. Here is Benzinga's everything-that-matters guide for the 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

GreenTree Hospitality Gr EPS will likely be near $0.16 while revenue will be around $40.10 million, according to analysts. In the same quarter last year, GreenTree Hospitality Gr posted EPS of $0.18 on sales of $40.87 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 report earnings in line when it publishes results Wednesday, quarterly profit would be down 11.11%. Sales would be down 1.89% from the year-ago period. Here is how the GreenTree Hospitality Gr's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.11 0.01 0.16 0.20
EPS Actual 0.10 0.04 0.18 0.18
Revenue Estimate 33.60 M 22.63 M 48.13 M 44.76 M
Revenue Actual 30.57 M 22.23 M 41.57 M 40.87 M

Stock Performance

Shares of GreenTree Hospitality Gr were trading at $11.76 as of November 30. Over the last 52-week period, shares are up 10.04%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. GreenTree Hospitality Gr is scheduled to hold the call at 20:00:00 ET and can be accessed here.

Posted In: Earnings