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Market Overview

Preview: Comfort Systems USA's Earnings

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Comfort Systems USA (NYSE:FIX) announces its next round of earnings this Thursday, February 25. Here is Benzinga's look at Comfort Systems USA's Q4 earnings report.

Net Income, Earnings, 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 predict Comfort Systems USA will report earnings of $0.83 per share on revenue of $694.68 million. In the same quarter last year, Comfort Systems USA reported EPS of $0.84 on revenue of $719.58 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 Thursday, EPS would have fallen 1.19%. Revenue would have fallen 3.46% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.08 0.45 0.41 0.68
EPS Actual 1.19 1.08 0.48 0.84
Revenue Estimate 775.90 M 700.92 M 637.97 M 658.97 M
Revenue Actual 714.10 M 743.47 M 700.13 M 719.58 M

Stock Performance

Shares of Comfort Systems USA were trading at $61.71 as of February 23. Over the last 52-week period, shares are up 43.22%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

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

 

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Posted-In: BZI-EPEarnings