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Market Overview

Earnings Preview for Axalta Coating Systems

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Axalta Coating Systems (NYSE:AXTA) announces its next round of earnings this Monday, April 26. Here is Benzinga's look at Axalta Coating Systems's Q1 earnings report.

Net Income, Earnings, 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

Sell-side analysts expect Axalta Coating Systems's EPS to be near $0.42 on sales of $1.03 billion. In the same quarter last year, Axalta Coating Systems reported EPS of $0.31 on revenue of $983.50 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.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 35.48%. Sales would be up 4.73% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.43 0.33 -0.11 0.29
EPS Actual 0.58 0.59 -0.15 0.31
Revenue Estimate 1.03 B 954.27 M 627.08 M 1.01 B
Revenue Actual 1.07 B 1.03 B 652.70 M 983.50 M

eps graph

Stock Performance

Over the last 52-week period, shares are up 67.66%. 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. Axalta Coating Systems is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings