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Market Overview

Earnings Outlook For REV Group

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On Thursday, January 07, REV Group (NYSE:REVG) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Analysts covering REV Group modeled for quarterly EPS of $0.16 on revenue of $616.74 million. In the same quarter last year, REV Group reported earnings per share of $0.05 on revenue of $652.90 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 Thursday, EPS would be up 220.0%. Sales would be down 5.54% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0 -0.16 -0.05 0.13
EPS Actual 0.1 -0.09 -0.04 0.05
Revenue Estimate 563.26 M 546.31 M 504.54 M 631.22 M
Revenue Actual 582.20 M 547.00 M 532.10 M 652.90 M

Stock Performance

Shares of REV Group were trading at $9.07 as of January 05. Over the last 52-week period, shares are down 16.29%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

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

 

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Posted-In: BZI-EPEarnings