Earnings Outlook for RMR Group

RMR Group RMR releases its next round of earnings this Monday, February 01. Here is Benzinga's essential guide to RMR Group's Q1 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

Sell-side analysts expect RMR Group's EPS to be near $0.38 on sales of $146.12 million. RMR Group earnings in the same period a year ago was $0.57 per share. Quarterly sales came in at $159.89 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 Wall Street estimate would represent a 33.33% decline in the company's earnings. Revenue would have fallen 8.61% from the same quarter last year. RMR Group's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of RMR Group were trading at $37.72 as of January 28. Over the last 52-week period, shares are down 21.51%. 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. RMR Group is scheduled to hold the call at 10:00:00 ET and can be accessed here.