Skip to main content

Market Overview

Hostess Brands Earnings Preview

Share:
Hostess Brands Earnings Preview

On Monday, May 17, Hostess Brands (NASDAQ:TWNK) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Based on management's projections, Hostess Brands analysts model for earnings of $0.19 per share on sales of $257.57 million. In the same quarter last year, Hostess Brands reported EPS of $0.14 on revenue of $243.49 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 match the consensus estimate, earnings would be up 35.71%. Sales would be have grown 5.78% from the same quarter last year. Here is how the Hostess Brands's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.20 0.17 0.15 0.13
EPS Actual 0.21 0.19 0.22 0.14
Revenue Estimate 251.83 M 252.93 M 253.76 M 228.88 M
Revenue Actual 256.04 M 260.86 M 256.23 M 243.49 M

eps graph

Stock Performance

Over the last 52-week period, shares are up 29.47%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hostess Brands is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

Related Articles (TWNK)

View Comments and Join the Discussion!

Posted-In: BZI-EPEarnings