Preview: Melco Resorts and Enter's Earnings

On Tuesday, July 27, Melco Resorts and Enter MLCO 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 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

Melco Resorts and Enter's per-share loss will be near $0.36 on sales of $615.16 million, according to Wall Street analysts. Melco Resorts and Enter reported a loss of $0.72 when it published results during the same quarter last year. Sales in that period totaled $175.85 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 50.0%. Sales would be up 249.82% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Melco Resorts and Enter were trading at $14.48 as of July 23. Over the last 52-week period, shares are down 13.28%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

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