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Market Overview

Preview: Kinross Gold's Earnings

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Kinross Gold (NYSE:KGC) releases its next round of earnings this Wednesday, February 10. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

Analysts covering Kinross Gold modeled for quarterly EPS of $0.22 on revenue of $1.22 billion. In the same quarter last year, Kinross Gold reported EPS of $0.13 on revenue of $996.20 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 Wall Street consensus estimate for earnings would represent a 69.23% increase for the company. Sales would be have grown 22.47% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.21 0.12 0.08 0.10
EPS Actual 0.25 0.15 0.10 0.13
Revenue Estimate 1.16 B 1.00 B 892.19 M 988.82 M
Revenue Actual 1.13 B 1.01 B 879.80 M 996.20 M

Stock Performance

Shares of Kinross Gold were trading at $7.375 as of February 08. Over the last 52-week period, shares are up 48.7%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Kinross Gold is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings