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Market Overview

Earnings Outlook for Itau Unibanco Holding

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Itau Unibanco Holding (NYSE:ITUB) releases its next round of earnings this Monday, February 01. Here is Benzinga's essential guide to Itau Unibanco Holding's Q4 earnings report.

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

Wall Street analysts see Itau Unibanco Holding reporting earnings of $0.1 per share on revenue of $5.22 billion. In the same quarter last year, Itau Unibanco Holding reported earnings per share of $0.19 on revenue of $7.96 billion.

Why Analyst Estimates And Earnings Surprises Are Important

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 post earnings in line with the consensus estimate when it reports Monday, EPS would be down 47.37%. Revenue would be down 34.41% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.1 0.09 0.14 0.18
EPS Actual 0.1 0.03 0.09 0.19
Revenue Estimate 5.31 B 5.49 B 6.85 B 7.30 B
Revenue Actual 5.28 B 4.37 B 6.60 B 7.96 B

Stock Performance

Shares of Itau Unibanco Holding were trading at $5.405 as of January 28. Over the last 52-week period, shares are down 31.3%. 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. Itau Unibanco Holding is scheduled to hold the call at 09:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings