A Preview Of FedNat Holding's Earnings

On Tuesday, March 02, FedNat Holding FNHC will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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

Analysts are predicting FedNat Holding will report a loss of $2.65 per share on revenue of $82.82 million. FedNat Holding reported a profit of $0.42 per share when it published results during the same quarter last year. Sales in that period totaled $95.19 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 Tuesday, earnings would be down 730.95%. Revenue would have fallen 12.99% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the past 52-week period, shares of FedNat Holding have declined 41.89%.

Do not be surprised to see the stock move on comments made during its conference call. FedNat Holding is scheduled to hold the call at 09:00:00 ET and can be accessed here.