Earnings Outlook for Enerplus

On Friday, February 19, Enerplus ERF will release its latest earnings report. Benzinga's outlook for Enerplus is included in the following report.

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

Enerplus EPS will likely be near $0.22 while revenue will be around $241.79 million, according to analysts. Enerplus reported a profit of $0.12 per share when it published results during the same quarter last year. Sales in that period totaled $251.79 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 report earnings in line when it publishes results Friday, earnings would be up 83.33%. Revenue would be down 3.97% on a year-over-year basis. Enerplus's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Enerplus were trading at $4.605 as of February 17. Over the last 52-week period, shares are down 8.73%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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