Earnings Outlook for Goldman Sachs BDC

Goldman Sachs BDC GSBD announces its next round of earnings this Thursday, May 06. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

Net Income, Earnings, 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 expects EPS of $0.48 and sales around $74.56 million. In the same quarter last year, Goldman Sachs BDC posted EPS of $0.45 on sales of $31.97 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, earnings would be up 6.67%. Revenue would be have grown 133.2% from the same quarter last year. Here is how the Goldman Sachs BDC's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 26.58%. 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. Goldman Sachs BDC is scheduled to hold the call at 09:00:00 ET and can be accessed here.