Earnings Preview for Ducommun

Ducommun DCO releases its next round of earnings this Tuesday, May 04. Here is Benzinga's essential guide to Ducommun's Q1 earnings report.

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

Ducommun EPS will likely be near $0.59 while revenue will be around $156.47 million, according to analysts. Ducommun reported a per-share profit of $0.67 when it published results during the same quarter last year. Sales in that period totaled $173.47 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 post earnings in line with the consensus estimate when it reports Tuesday, EPS would be down 11.94%. Sales would be down 9.8% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Ducommun were trading at $58.8 as of April 30. Over the last 52-week period, shares are up 137.57%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ducommun is scheduled to hold the call at 17:00:00 ET and can be accessed here.