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Earnings Preview: Equity Bancshares

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Equity Bancshares (NASDAQ:EQBK) unveils its next round of earnings this Monday, January 25. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Based on Equity Bancshares management projections, analysts predict EPS of $0.54 on revenue of $38.18 million. In the same quarter last year, Equity Bancshares reported earnings per share of $0.64 on sales of $39.05 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 report earnings in line when it publishes results Monday, quarterly profit would be down 15.62%. Revenue would be down 2.23% from the year-ago period. The company'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 0.43 0.23 0.45 0.60
EPS Actual 0.60 0.11 0.08 0.64
Revenue Estimate 38.52 M 36.93 M 37.50 M 37.50 M
Revenue Actual 38.59 M 38.62 M 37.39 M 39.05 M

Stock Performance

Shares of Equity Bancshares were trading at $23.48 as of January 21. Over the last 52-week period, shares are down 16.64%. 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. Equity Bancshares is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings