On Tuesday, July 27, Turning Point Brands TPB will release its latest earnings report. Check out Benzinga's preview to understand the implications.
Net Income, Earnings, 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
Turning Point Brands EPS is expected to be around $0.65, according to sell-side analysts. Sales will likely be near $106.22 million. In the same quarter last year, Turning Point Brands posted EPS of $0.71 on sales of $104.96 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 report earnings in line when it publishes results Tuesday, earnings would be down 8.45%. Revenue would be up 1.2% from the year-ago period. Turning Point Brands's reported EPS has stacked up against analyst estimates in the past like this:
|Quarter||Q1 2021||Q4 2020||Q3 2020||Q2 2020|
|Revenue Estimate||100.14 M||101.32 M||91.86 M||95.44 M|
|Revenue Actual||107.64 M||105.28 M||104.17 M||104.96 M|
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Shares of Turning Point Brands were trading at $45.55 as of July 23. Over the last 52-week period, shares are up 37.42%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Turning Point Brands is scheduled to hold the call at 10:00:00 ET and can be accessed here.
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