Capitala Finance's Earnings: A Preview

Capitala Finance CPTA announces its next round of earnings this Monday, March 08. Here is Benzinga's everything-that-matters guide for this Monday's Q4 earnings announcement.

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

Capitala Finance earnings will be near $0.23 per share on sales of $6.14 million, according to analysts. Capitala Finance EPS in the same period a year ago totaled $0.12. Revenue was $9.63 million.

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 91.67% increase in the company's earnings. Revenue would be down 36.27% from the year-ago period. Capitala Finance's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the past 52-week period, shares of Capitala Finance have declined 54.54%.

Do not be surprised to see the stock move on comments made during its conference call. Capitala Finance is scheduled to hold the call at 08:30:00 ET and can be accessed here.