On Wednesday, February 24, Element Solutions ESI will release its latest earnings report. Check out Benzinga's preview to understand the implications.
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
Based on Element Solutions management projections, analysts predict EPS of $0.28 on revenue of $495.11 million. In the same quarter last year, Element Solutions posted EPS of $0.22 on sales of $454.70 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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 27.27%. Sales would be up 8.89% from the same quarter last year. Here is how the Element Solutions's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.20 | 0.14 | 0.20 | 0.20 |
| EPS Actual | 0.22 | 0.18 | 0.25 | 0.22 |
| Revenue Estimate | 439.95 M | 377.89 M | 436.38 M | 449.09 M |
| Revenue Actual | 477.50 M | 387.00 M | 452.60 M | 454.70 M |
Stock Performance
Over the last 52-week period, shares are up 57.76%. Given that these returns are generally positive, long-term shareholders can relax 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. Element Solutions is scheduled to hold the call at 08:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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