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Market Overview

Earnings Preview for GMS


On Thursday, December 03, GMS (NYSE:GMS) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Based on GMS management projections, analysts predict EPS of $0.91 on revenue of $798.05 million. GMS EPS in the same period a year ago totaled $1.0. Revenue was $861.93 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.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 9.0%. Revenue would be down 7.41% from the same quarter last year. GMS's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate 0.81 0.52 0.51 0.99
EPS Actual 0.94 0.56 0.52 1
Revenue Estimate 817.16 M 723.46 M 757.72 M 859.95 M
Revenue Actual 802.57 M 770.85 M 761.35 M 861.93 M

Stock Performance

Shares of GMS were trading at $30.46 as of December 01. Over the last 52-week period, shares are up 2.14%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. GMS is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: Earnings