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Market Overview

Earnings Preview for Earthstone Energy


Earthstone Energy (NYSE:ESTE) unveils its next round of earnings this Wednesday, March 10. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Earthstone Energy EPS is expected to be around $0.03, according to sell-side analysts. Sales will likely be near $42.37 million. Earthstone Energy reported a per-share profit of $0.28 when it published results during the same quarter last year. Sales in that period totaled $66.79 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 analyst consensus estimate would represent a 89.29% decrease in the company's earnings. Sales would be down 36.56% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.08 0.1 0.17 0.31
EPS Actual 0.06 0.2 0.13 0.28
Revenue Estimate 40.39 M 38.06 M 52.82 M 62.49 M
Revenue Actual 41.05 M 21.66 M 45.14 M 66.79 M

Stock Performance

Shares of Earthstone Energy were trading at $7.46 as of March 08. Over the last 52-week period, shares are up 215.96%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

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


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Posted-In: BZI-EPEarnings