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Market Overview

Terex's Earnings: A Preview


On Thursday, February 11, Terex (NYSE:TEX) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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

Wall Street expects EPS of $0.02 and sales around $757.69 million. Terex EPS in the same period a year ago totaled $0.36. Sales were $885.00 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.

The analyst consensus estimate would represent a 94.44% decline in the company's EPS figure. Sales would be down 14.39% from the same quarter last year. Here is how the Terex's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.02 -0.60 -0.05 0.19
EPS Actual 0.31 -0.05 -0.35 0.36
Revenue Estimate 744.63 M 646.40 M 860.44 M 922.22 M
Revenue Actual 765.60 M 690.50 M 833.60 M 885.00 M

Stock Performance

For a full 12 months, the return has risen by 47.95%. 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. Terex is scheduled to hold the call at 09:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings