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Market Overview

Earnings Preview: Saratoga Investment

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Saratoga Investment (NYSE:SAR) will be releasing its next round of earnings this Wednesday, January 06. For all of the relevant information, here is your guide for Wednesday's Q3 earnings announcement.

Net Income, Earnings, 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

Saratoga Investment EPS will likely be near $0.47 while revenue will be around $13.47 million, according to analysts. Saratoga Investment reported a profit of $0.61 per share when it published results during the same quarter last year. Sales in that period totaled $14.20 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.

The Wall Street estimate would represent a 22.95% decline in the company's earnings. Revenue would have fallen 5.11% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020
EPS Estimate 0.26 -1.38 1.46 0.58
EPS Actual 0.49 0.51 0.61 0.61
Revenue Estimate 12.90 M 13.37 M 14.65 M 13.99 M
Revenue Actual 13.86 M 13.30 M 17.61 M 14.20 M

Stock Performance

Shares of Saratoga Investment were trading at $20.44 as of January 04. Over the last 52-week period, shares are down 17.71%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

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

 

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Posted-In: BZI-EPEarnings