A Preview Of Centennial Resource Dev's Earnings

Centennial Resource Dev CDEV releases its next round of earnings this Tuesday, February 23. Here is Benzinga's essential guide to Centennial Resource Dev's Q4 earnings report.

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

Sell-side analysts are expecting Centennial Resource Dev's loss per share to be near $0.06 on sales of $142.46 million. Centennial Resource Dev earnings in the same period a year ago was $0.03 per share. Quarterly sales came in at $256.39 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 post earnings in line with the consensus estimate when it reports Tuesday, EPS would be down 300.0%. Revenue would be down 44.44% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Shares of Centennial Resource Dev were trading at $3.62 as of February 19. Over the last 52-week period, shares are up 70.96%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

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