A Preview Of Twin Disc's Earnings

On Friday, January 29, Twin Disc TWIN will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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

Analysts are expecting Twin Disc to report a loss of $0.19 per share. Revenue will likely be around $50.65 million, according to the consensus estimate. In the same quarter last year, Twin Disc reported a loss per share of $0.23 on revenue of $59.54 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.

If the company were to match the consensus estimate when it reports Friday, earnings would be up 17.39%. Revenue would have fallen 14.93% from the same quarter last year. Twin Disc's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Twin Disc were trading at $8.45 as of January 27. Over the last 52-week period, shares are down 11.59%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Twin Disc is scheduled to hold the call at 11:00:00 ET and can be accessed here.