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Market Overview

Azul's Earnings Outlook

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On Thursday, March 04, Azul (NYSE:AZUL) 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 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

Wall Street analysts see Azul reporting a loss of $0.89 per share on revenue of $327.57 million. In the same quarter last year, Azul posted EPS of $0.23 on sales of $780.46 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 Thursday, EPS would be down 486.96%. Revenue would be down 58.03% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -1.18 -1.22 0.24 0.92
EPS Actual -0.37 -0.44 -0.37 0.23
Revenue Estimate 171.58 M 94.82 M 547.45 M 723.34 M
Revenue Actual 149.68 M 74.82 M 633.40 M 780.46 M

Stock Performance

Shares of Azul were trading at $20.675 as of March 02. Over the last 52-week period, shares are down 20.17%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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

 

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Posted-In: BZI-EPEarnings