Earnings Preview for Otter Tail

On Monday, May 03, Otter Tail OTTR will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Otter Tail earnings will be near $0.67 per share on sales of $246.62 million, according to analysts. Otter Tail EPS in the same period a year ago totaled $0.6. Revenue was $234.75 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 match the consensus estimate when it reports Monday, earnings would be up 11.67%. Revenue would be up 5.06% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Otter Tail were trading at $46.95 as of April 29. Over the last 52-week period, shares are up 8.02%. 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. Otter Tail is scheduled to hold the call at 11:00:00 ET and can be accessed here.