Earnings Outlook for Norbord

On Thursday, February 11, Norbord OSB will release its latest earnings report. Here is Benzinga's outlook for the company.

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 analysts see Norbord reporting earnings of $1.06 per share on sales of $556.14 million. In the same quarter last year, Norbord posted a loss of $0.13 per share on sales of $373.00 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 analyst consensus estimate would represent a 915.38% increase in the company's EPS figure. Revenue would be up 49.1% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Norbord were trading at $43.21 as of January 28. Over the last 52-week period, shares are up 30.82%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Norbord is scheduled to hold the call at 11:30:00 ET and can be accessed here.