Earnings Outlook for ITT

ITT ITT releases its next round of earnings this Friday, May 07. Here is Benzinga's essential guide to ITT's Q1 earnings report.

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

Wall Street analysts see ITT reporting earnings of $0.87 per share on sales of $659.34 million. In the same quarter last year, ITT posted EPS of $0.8 on sales of $663.30 million.

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.

The Wall Street estimate would represent a 8.75% increase in the company's earnings. Revenue would be down 0.6% on a year-over-year basis. ITT's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of ITT were trading at $96.37 as of May 05. Over the last 52-week period, shares are up 88.94%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. ITT is scheduled to hold the call at 09:00:00 ET and can be accessed here.