Earnings Preview: MYR Group

MYR Group MYRG will be releasing its next round of earnings this Wednesday, March 03. For all of the relevant information, here is your guide for Wednesday's Q4 earnings announcement.

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

Wall Street analysts see MYR Group reporting earnings of $0.79 per share on revenue of $580.86 million. In the same quarter last year, MYR Group reported earnings per share of $0.76 on sales of $571.08 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 Wednesday, EPS would be up 3.95%. Sales would be up 1.71% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of MYR Group were trading at $62.79 as of March 01. Over the last 52-week period, shares are up 134.21%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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