Webster Financial WBS announces its next round of earnings this Thursday, January 21. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.
Net Income, Earnings, 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
Wall Street analysts see Webster Financial reporting earnings of $0.71 per share on sales of $228.36 million. In the same quarter last year, Webster Financial reported earnings per share of $0.96 on sales of $231.25 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.
The Wall Street estimate would represent a 26.04% decline in the company's earnings. Sales would have fallen 1.25% from the same quarter last year. Webster Financial's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.67 | 0.51 | 0.55 | 0.97 |
| EPS Actual | 0.75 | 0.57 | 0.39 | 0.96 |
| Revenue Estimate | 235.84 M | 230.99 M | 231.73 M | 236.87 M |
| Revenue Actual | 219.26 M | 224.41 M | 230.80 M | 231.25 M |
Stock Performance
Shares of Webster Financial were trading at $52.04 as of January 19. Over the last 52-week period, shares are up 6.62%. 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. Webster Financial is scheduled to hold the call at 09:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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