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Tencent Music Earnings Preview

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Tencent Music Earnings Preview

On Monday, May 17, Tencent Music (NYSE:TME) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Analysts predict Tencent Music will report earnings of $0.09 per share on revenue of $1.20 billion. In the same quarter last year, Tencent Music reported earnings per share of $0.09 on sales of $891.00 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.

If the company were to match the consensus estimate when it reports Monday, EPS would have fallen 0%. Revenue would be up 34.68% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.12 0.11 0.09 0.09
EPS Actual 0.12 0.12 0.10 0.09
Revenue Estimate 1.28 B 1.13 B 981.68 M 898.16 M
Revenue Actual 1.28 B 1.12 B 981.00 M 891.00 M

eps graph

Stock Performance

Shares of Tencent Music were trading at $14.58 as of May 13. Over the last 52-week period, shares are up 19.46%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Tencent Music is scheduled to hold the call at 20:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings