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Market Overview

Earnings Preview for Copa Holdings

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Copa Holdings (NYSE:CPA) unveils its next round of earnings this Wednesday, February 10. Get prepared with Benzinga's ultimate preview for Copa Holdings's Q4 earnings.

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 Copa Holdings management projections, analysts predict EPS of $2.15 on revenue of $155.86 million. In the same quarter last year, Copa Holdings reported EPS of $2.17 on revenue of $681.93 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 down 199.08%. Sales would be down 77.14% 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 -2.74 -3.55 1.36 1.98
EPS Actual -2.86 -2.70 1.75 2.17
Revenue Estimate 39.02 M 15.20 M 613.37 M 682.28 M
Revenue Actual 32.38 M 14.53 M 595.45 M 681.93 M

Stock Performance

Shares of Copa Holdings were trading at $80.67 as of February 08. Over the last 52-week period, shares are down 25.85%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Copa Holdings is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings