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Market Overview

Preview: Primoris Services's Earnings

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On Monday, February 22, Primoris Services (NASDAQ:PRIM) will release its latest earnings report. Benzinga's outlook for Primoris Services is included in the following report.

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

Primoris Services EPS will likely be near $0.43 while revenue will be around $840.34 million, according to analysts. Primoris Services reported a profit of $0.53 per share when it published results during the same quarter last year. Sales in that period totaled $789.78 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.

If the company were to match the consensus estimate when it reports Monday, EPS would have fallen 18.87%. Sales would be have grown 6.4% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.66 0.29 -0.01 0.53
EPS Actual 0.90 0.68 -0.08 0.53
Revenue Estimate 896.54 M 799.14 M 668.76 M 833.12 M
Revenue Actual 942.70 M 908.22 M 743.24 M 789.78 M

Stock Performance

For a full 12 months, the return has risen by 39.38%. 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. Primoris Services is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings