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Market Overview

Earnings Preview for Kosmos Energy


Kosmos Energy (NYSE:KOS) announces its next round of earnings this Monday, February 22. Here is Benzinga's everything-that-matters guide for this Monday's Q4 earnings announcement.

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

Analysts are predicting Kosmos Energy will report a loss of $0.14 per share on revenue of $308.80 million. Kosmos Energy's loss in the same period a year ago was $0.09 per share. Quarterly sales came in at $460.21 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 analyst consensus estimate would represent a 55.56% decrease in the company's earnings. Revenue would have fallen 32.9% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.16 -0.33 -0.15 -0.11
EPS Actual -0.12 -0.23 -0.16 -0.09
Revenue Estimate 220.74 M 170.18 M 199.75 M 398.03 M
Revenue Actual 224.79 M 127.31 M 177.78 M 460.21 M

Stock Performance

Shares of Kosmos Energy were trading at $2.72 as of February 18. Over the last 52-week period, shares are down 32.13%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

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


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Posted-In: BZI-EPEarnings