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Market Overview

Preview: Evergy's Earnings

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On Friday, February 26, Evergy (NYSE:EVRG) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Evergy EPS is expected to be around $0.22, according to sell-side analysts. Sales will likely be near $1.19 billion. In the same quarter last year, Evergy posted EPS of $0.32 on sales of $1.13 billion.

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.

The Wall Street estimate would represent a 31.25% decline in the company's earnings. Revenue would be up 5.12% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.57 0.68 0.42 0.31
EPS Actual 1.73 0.68 0.41 0.32
Revenue Estimate 1.56 B 1.23 B 1.22 B 1.25 B
Revenue Actual 1.52 B 1.19 B 1.12 B 1.13 B

Stock Performance

Shares of Evergy were trading at $54.47 as of February 24. Over the last 52-week period, shares are down 16.0%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Evergy is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings