Earnings Preview: GreenSky

GreenSky GSKY unveils its next round of earnings this Wednesday, March 10. Here is Benzinga's everything-that-matters guide for the 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

GreenSky EPS will likely be near $0.06 while revenue will be around $125.32 million, according to analysts. GreenSky earnings in the same period a year ago was $0.12 per share. Quarterly sales came in at $133.84 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 report earnings in line when it publishes results Wednesday, quarterly profit would be down 50.0%. Sales would be down 6.36% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the last 52-week period, shares of GreenSky are up 7.65%.

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