World Fuel Services INT 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 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
Analysts expect World Fuel Services earnings of $0.27 per share. Revenue will likely be around $6.10 billion, according to the consensus estimate. World Fuel Services reported a profit of $0.67 per share when it published results during the same quarter last year. Sales in that period totaled $8.02 billion.
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 Thursday, EPS would be down 59.7%. Revenue would be down 23.89% 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 | 0.23 | 0.31 | -0.09 | 0.40 |
| EPS Actual | 0.02 | 0.33 | 0.13 | 0.67 |
| Revenue Estimate | 5.16 B | 4.61 B | 3.84 B | 7.71 B |
| Revenue Actual | 4.70 B | 4.48 B | 3.16 B | 8.02 B |
Stock Performance
Shares of World Fuel Services were trading at $33.47 as of April 27. Over the last 52-week period, shares are up 35.68%. 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. World Fuel Services is scheduled to hold the call at 17:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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