Earnings Outlook For Shaw Communications

Shaw Communications SJR announces its next round of earnings this Wednesday, April 14. Here is Benzinga's everything-that-matters guide for this Wednesday's Q2 earnings announcement.

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

Based on Shaw Communications management projections, analysts predict EPS of $0.22 on revenue of $1.01 billion. In the same quarter last year, Shaw Communications reported EPS of $0.23 on revenue of $1.04 billion.

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.

The Wall Street estimate would represent a 4.35% decline in the company's earnings. Sales would be down 2.51% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 70.03%. 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. Shaw Communications is scheduled to hold the call at 09:30:00 ET and can be accessed here.