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Market Overview

Earnings Outlook for People's United Finl

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People's United Finl (NASDAQ:PBCT) will be releasing its next round of earnings this Thursday, January 21. For all of the relevant information, here is your guide for Thursday's Q4 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

Analysts predict People's United Finl will report earnings of $0.33 per share on revenue of $500.07 million. In the same quarter last year, People's United Finl announced EPS of $0.37 on revenue of $506.90 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 Thursday, earnings would be down 10.81%. Revenue would be down 1.35% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.29 0.24 0.23 0.33
EPS Actual 0.34 0.24 0.33 0.37
Revenue Estimate 506.12 M 510.18 M 500.76 M 487.24 M
Revenue Actual 492.50 M 495.20 M 519.80 M 506.90 M

Stock Performance

Shares of People's United Finl were trading at $14.63 as of January 19. Over the last 52-week period, shares are down 10.39%. 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. People's United Finl is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings