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Earnings Outlook For Hydro One

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Hydro One (TSX:H) announces its next round of earnings this Friday, May 07. Here is Benzinga's everything-that-matters guide for this Friday'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

Based on management's projections, Hydro One analysts model for earnings of $0.44 per share on sales of $2.04 billion. In the same quarter last year, Hydro One announced EPS of $0.38 on revenue of $1.85 billion.

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.

If the company were to match the consensus estimate, earnings would be up 15.79%. Sales would be up 10.27% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q1 2021 Q4 2021 Q4 2021 Q3 2020 Q3 2020 Q2 2020 Q2 2020 Q1 2020 Q1 2020
EPS Estimate -1.30 0.30 -1.30 0.43 -1.30 0.31 -1.34 0.39 -0.15
EPS Actual -3.57 0.27 -1.77 0.47 -1.48 0.39 -1.80 0.38 -0.35
Revenue Estimate 468.88 M 1.51 B 468.91 M 1.86 B 425.15 M 1.49 B 316.39 M 1.76 B 1.07 B
Revenue Actual 438.00 M 1.87 B 424.00 M 1.90 B 399.00 M 1.67 B 250.00 M 1.85 B 993.00 M

eps graph

Stock Performance

Shares of Hydro One were trading at $80.04 as of May 05. Over the last 52-week period, shares are up 49.07%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hydro One is scheduled to hold the call at 11:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings