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Earnings Preview: Douglas Dynamics

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Douglas Dynamics (NYSE:PLOW) 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 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 expects EPS of $0.59 and sales around $147.87 million. Douglas Dynamics EPS in the same period a year ago totaled $0.72. Sales were $160.30 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.

If the company were to report earnings in line when it publishes results Monday, earnings would be down 18.06%. Sales would have fallen 7.75% from the same quarter last year. Here is how the Douglas Dynamics's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.34 0.20 -0.09 0.65
EPS Actual 0.42 0.33 -0.34 0.72
Revenue Estimate 116.73 M 111.27 M 81.93 M 150.33 M
Revenue Actual 133.76 M 120.04 M 68.19 M 160.30 M

Stock Performance

Shares of Douglas Dynamics were trading at $45.89 as of February 18. Over the last 52-week period, shares are down 4.91%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Douglas Dynamics is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings