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Market Overview

Preview: Gol Intelligent Airlines's Earnings


On Thursday, March 18, Gol Intelligent Airlines (NYSE:GOL) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Analysts are predicting Gol Intelligent Airlines will report a loss of $0.45 per share on revenue of $365.70 million. In the same quarter last year, Gol Intelligent Airlines reported EPS of $0.43 on revenue of $950.83 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

The Wall Street estimate would represent a 204.65% decline in the company's earnings. Revenue would be down 61.54% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.69 -0.89 0.23 0.82
EPS Actual -1.80 -2.08 0.20 0.43
Revenue Estimate 191.01 M 132.97 M 678.78 M 894.90 M
Revenue Actual 181.31 M 66.66 M 711.39 M 950.83 M

Stock Performance

Over the last 52-week period, shares are up 236.51%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Gol Intelligent Airlines is scheduled to hold the call at 11:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings