Earnings Outlook for Shell Midstream Partners

Shell Midstream Partners SHLX unveils its next round of earnings this Friday, February 19. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, 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

Wall Street analysts see Shell Midstream Partners reporting earnings of $0.32 per share on revenue of $118.22 million. In the same quarter last year, Shell Midstream Partners reported EPS of $0.37 on revenue of $126.00 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 Wall Street estimate would represent a 13.51% decline in the company's earnings. Revenue would be down 6.17% from the year-ago period. Here is how the Shell Midstream Partners's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the past 52-week period, shares of Shell Midstream Partners have declined 37.44%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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