Cincinnati Financial Earnings Preview


On Wednesday, April 28, Cincinnati Financial CINF 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

Wall Street analysts see Cincinnati Financial reporting earnings of $1.05 per share on sales of $1.68 billion. In the same quarter last year, Cincinnati Financial reported earnings per share of $0.84 on revenue of $1.46 billion.

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.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 25.0%. Revenue would be up 15.38% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 1.19 0.74 0.67 1.04
EPS Actual 1.61 0.39 0.44 0.84
Revenue Estimate 1.66 B 1.65 B 1.61 B 1.60 B
Revenue Actual 2.69 B 2.23 B 2.71 B 1.46 B

Stock Performance

Shares of Cincinnati Financial were trading at $109.02 as of April 26. Over the last 52-week period, shares are up 54.93%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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

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