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Market Overview

Earnings Outlook For Atlantic Capital

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On Thursday, January 21, Atlantic Capital (NASDAQ:ACBI) 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 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

Atlantic Capital earnings will be near $0.39 per share on sales of $25.47 million, according to analysts. Atlantic Capital EPS in the same period a year ago totaled $0.32. Sales were $23.41 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 match the consensus estimate when it reports Thursday, EPS would be up 21.88%. Sales would be up 8.79% from the year-ago period. 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 2020
EPS Estimate 0.26 0.19 0.25 0.30
EPS Actual 0.40 0.09 0.10 0.32
Revenue Estimate 25.10 M 23.75 M 22.62 M 22.52 M
Revenue Actual 24.22 M 23.97 M 23.62 M 23.41 M

Stock Performance

Shares of Atlantic Capital were trading at $17.29 as of January 19. Over the last 52-week period, shares are down 3.59%. 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. Atlantic Capital is scheduled to hold the call at 13:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings