On Wednesday, February 10, Sun Life Financial SLF will release its latest earnings report. Check out Benzinga's preview to understand the implications.
What Are Earnings, Net Income, 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
Sun Life Financial EPS will likely be near $0.89 while revenue will be around $6.38 billion, according to analysts. Sun Life Financial earnings in the same period a year ago was $1.03 per share. Quarterly sales came in at $6.56 billion.
Why Analyst Estimates And Earnings Surprises Are Important
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.
The Wall Street consensus estimate for earnings would represent a 13.59% decrease for the company. Revenue would be down 2.8% on a year-over-year basis. 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|
|Revenue Estimate||6.38 B||6.38 B||6.38 B||6.38 B|
|Revenue Actual||7.53 B||10.95 B||4.83 B||6.56 B|
Over the last 52-week period, shares are down 2.56%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Sun Life Financial is scheduled to hold the call at 10:00:00 ET and can be accessed here.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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