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Market Overview

Earnings Outlook for CapStar Financial Hldgs

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CapStar Financial Hldgs (NASDAQ:CSTR) releases its next round of earnings this Thursday, January 28. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

CapStar Financial Hldgs EPS will likely be near $0.37 while revenue will be around $31.95 million, according to analysts. In the same quarter last year, CapStar Financial Hldgs reported earnings per share of $0.3 on sales of $22.30 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 23.33% increase in the company's earnings. Sales would be up 43.27% from the year-ago period. CapStar Financial Hldgs'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 0.28 0.21 0.26 0.32
EPS Actual 0.43 0.36 0.08 0.30
Revenue Estimate 31.43 M 23.27 M 22.08 M 23.12 M
Revenue Actual 34.46 M 28.50 M 22.54 M 22.30 M

Stock Performance

Over the past 52-week period, shares of CapStar Financial Hldgs have declined 8.26%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CapStar Financial Hldgs is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings