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Market Overview

Preview: Valvoline's Earnings

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On Wednesday, February 03, Valvoline (NYSE:VVV) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Based on management's projections, Valvoline analysts model for earnings of $0.36 per share on sales of $629.90 million. Valvoline reported a per-share profit of $0.35 when it published results during the same quarter last year. Sales in that period totaled $607.00 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.

If the company were to match the consensus estimate, earnings would be up 2.86%. Revenue would be up 3.77% from the same quarter last year. Valvoline's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.37 0.24 0.37 0.30
EPS Actual 0.46 0.28 0.39 0.35
Revenue Estimate 617.47 M 506.47 M 589.51 M 581.91 M
Revenue Actual 652.00 M 516.00 M 578.00 M 607.00 M

Stock Performance

Over the last 52-week period, shares are up 5.98%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Valvoline is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings