Neenah's Earnings: A Preview

On Wednesday, May 05, Neenah NP will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, 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

Neenah EPS will likely be near $0.74 while revenue will be around $211.75 million, according to analysts. In the same quarter last year, Neenah reported earnings per share of $1.12 on sales of $233.60 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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 33.93%. Revenue would be down 9.35% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Neenah were trading at $54.99 as of May 03. Over the last 52-week period, shares are up 20.88%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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