Earnings Preview: Hillenbrand

On Wednesday, February 03, Hillenbrand HI will release its latest earnings report. Benzinga's outlook for Hillenbrand is included in the following report.

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

Based on management's projections, Hillenbrand analysts model for earnings of $0.66 per share on sales of $640.42 million. Hillenbrand reported a per-share profit of $0.63 when it published results during the same quarter last year. Sales in that period totaled $566.90 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 Wednesday, earnings would be up 4.76%. Revenue would be up 12.97% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

For a full 12 months, the return has risen by 43.99%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. Hillenbrand is scheduled to hold the call at 08:00:00 ET and can be accessed here.