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Market Overview

Earnings Outlook For Valvoline

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On Wednesday, April 28, Valvoline (NYSE:VVV) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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 Valvoline's EPS to be near $0.37 on sales of $658.26 million. Valvoline EPS in the same period a year ago totaled $0.39. Revenue was $578.00 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.

The analyst consensus estimate would represent a 5.13% decrease in the company's earnings. Revenue would be have grown 13.89% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.36 0.37 0.24 0.37
EPS Actual 0.41 0.46 0.28 0.39
Revenue Estimate 629.90 M 617.47 M 506.47 M 589.51 M
Revenue Actual 653.00 M 652.00 M 516.00 M 578.00 M

eps graph

Stock Performance

Shares of Valvoline were trading at $28.91 as of April 26. Over the last 52-week period, shares are up 59.01%. 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. Valvoline is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings