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Earnings Preview: Simmons First National

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Simmons First National (NASDAQ:SFNC) announces its next round of earnings this Tuesday, January 26. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

Net Income, Earnings, 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

Based on Simmons First National management projections, analysts predict EPS of $0.39 on revenue of $198.51 million. In the same quarter last year, Simmons First National announced EPS of $0.66 on revenue of $212.70 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 analyst consensus estimate would represent a 40.91% decrease in the company's earnings. Revenue would be down 6.67% on a year-over-year basis. Simmons First National'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 0.4 0.33 0.43 0.59
EPS Actual 0.6 0.54 0.68 0.49
Revenue Estimate 208.62 M 204.46 M 212.08 M 205.61 M
Revenue Actual 225.46 M 213.91 M 249.88 M 212.70 M

Stock Performance

Over the last 52-week period, shares are up 7.82%. 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. Simmons First National is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings