Earnings Outlook for Sensient Technologies

On Friday, February 12, Sensient Technologies SXT will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, 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 Sensient Technologies reporting earnings of $0.61 per share on sales of $310.74 million. In the same quarter last year, Sensient Technologies posted EPS of $0.62 on sales of $318.58 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 1.61% decline in the company's EPS figure. Sales would be down 2.46% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.68 0.68 0.62 0.61
EPS Actual 0.77 0.70 0.72 0.62
Revenue Estimate 303.20 M 311.79 M 319.50 M 307.51 M
Revenue Actual 323.57 M 323.09 M 350.68 M 318.58 M

Stock Performance

Shares of Sensient Technologies were trading at $77.01 as of February 10. Over the last 52-week period, shares are up 39.14%. 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. Sensient Technologies is scheduled to hold the call at 09:30:00 ET and can be accessed here.

Posted In: BZI-EPEarnings