Earnings Preview: Northern Oil & Gas

Northern Oil & Gas NOG unveils its next round of earnings this Friday, March 12. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Based on Northern Oil & Gas management projections, analysts predict EPS of $0.66 on revenue of $129.28 million. Northern Oil & Gas EPS in the same period a year ago totaled $0.05. Sales were $160.70 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 Friday, earnings would be up 1220.0%. Sales would be down 19.55% from the same quarter last year. Northern Oil & Gas's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the last 52-week period, shares are up 1381.32%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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