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Market Overview

A Preview Of Cadence Bancorp's Earnings

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Cadence Bancorp (NYSE:CADE) releases its next round of earnings this Monday, January 25. Here is Benzinga's essential guide to Cadence Bancorp's Q4 earnings report.

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

Wall Street analysts see Cadence Bancorp reporting earnings of $1.48 per share on revenue of $341.92 million. In the same quarter last year, Cadence Bancorp announced EPS of $0.4 on revenue of $194.81 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 post earnings in line with the consensus estimate when it reports Monday, EPS would be up 270.0%. Revenue would be up 75.52% 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 0.19 0.12 0.16 0.45
EPS Actual 0.40 -0.45 0.10 0.40
Revenue Estimate 185.42 M 187.87 M 185.61 M 191.31 M
Revenue Actual 186.63 M 184.66 M 188.54 M 194.81 M

Stock Performance

Over the last 52-week period, shares are up 26.54%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cadence Bancorp is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings