Halliburton HAL announces its next round of earnings this Wednesday, April 21. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 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
Wall Street analysts see Halliburton reporting earnings of $0.17 per share on revenue of $3.36 billion. Halliburton reported a per-share profit of $0.31 when it published results during the same quarter last year. Sales in that period totaled $5.04 billion.
Why Analyst Estimates And Earnings Surprises Are Important
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 Wednesday, quarterly profit would be down 45.16%. Sales would be down 33.29% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.15 | 0.08 | -0.11 | 0.24 |
| EPS Actual | 0.18 | 0.11 | 0.05 | 0.31 |
| Revenue Estimate | 3.21 B | 3.09 B | 3.31 B | 5.01 B |
| Revenue Actual | 3.24 B | 2.98 B | 3.20 B | 5.04 B |
Stock Performance
Shares of Halliburton were trading at $20.66 as of April 19. Over the last 52-week period, shares are up 143.86%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Halliburton is scheduled to hold the call at 09:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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