A Preview Of Moelis & Co's Earnings

Moelis & Co MC announces its next round of earnings this Wednesday, February 10. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

What Are Earnings, Net Income, 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

Moelis & Co EPS will likely be near $1.34 while revenue will be around $309.01 million, according to analysts. In the same quarter last year, Moelis & Co reported EPS of $0.38 on revenue of $223.53 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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 252.63%. Revenue would be up 38.24% on a year-over-year basis. Moelis & Co's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the last 52-week period, shares of Moelis & Co are up 36.15%.

Do not be surprised to see the stock move on comments made during its conference call. Moelis & Co is scheduled to hold the call at 17:00:00 ET and can be accessed here.