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Market Overview

Terex's Earnings: A Preview

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Terex (NYSE:TEX) announces its next round of earnings this Thursday, April 29. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

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

Terex EPS will likely be near $0.24 while revenue will be around $832.03 million, according to analysts. Terex reported a loss of $0.35 when it published results during the same quarter last year. Sales in that period totaled $833.60 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 report earnings in line when it publishes results Thursday, quarterly profit would be up 168.57%. Revenue would be down 0.19% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.02 0.02 -0.60 -0.05
EPS Actual 0.21 0.31 -0.05 -0.35
Revenue Estimate 757.69 M 744.63 M 646.40 M 860.44 M
Revenue Actual 786.70 M 765.60 M 690.50 M 833.60 M

eps graph

Stock Performance

Shares of Terex were trading at $47.26 as of April 27. Over the last 52-week period, shares are up 215.87%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Terex is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings