Premier PINC unveils its next round of earnings this Tuesday, February 02. Get prepared with Benzinga's ultimate preview for Premier's Q2 earnings.
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
Analysts predict Premier will report earnings of $0.54 per share on revenue of $389.05 million. In the same quarter last year, Premier reported earnings per share of $0.74 on revenue of $319.61 million.
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.
The analyst consensus estimate would represent a 27.03% decrease in the company's earnings. Sales would be up 21.73% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:
Quarter | Q1 2020 | Q4 2020 | Q3 2020 | Q2 2020 |
---|---|---|---|---|
EPS Estimate | 0.49 | 0.61 | 0.71 | 0.68 |
EPS Actual | 0.57 | 0.58 | 0.73 | 0.74 |
Revenue Estimate | 305.01 M | 314.36 M | 313.46 M | 308.29 M |
Revenue Actual | 346.89 M | 342.75 M | 334.82 M | 319.61 M |
Stock Performance
Shares of Premier were trading at $33.87 as of January 29. Over the last 52-week period, shares are up 5.89%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Premier is scheduled to hold the call at 08:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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