Essent Gr's Earnings: A Preview

On Friday, May 07, Essent Gr ESNT 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

Essent Gr EPS is expected to be around $1.22, according to sell-side analysts. Sales will likely be near $244.56 million. In the same quarter last year, Essent Gr reported earnings per share of $1.52 on sales of $228.84 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.

The Wall Street estimate would represent a 19.74% decline in the company's earnings. Sales would be up 6.87% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Essent Gr were trading at $51.94 as of May 05. Over the last 52-week period, shares are up 85.07%. 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. Essent Gr is scheduled to hold the call at 10:00:00 ET and can be accessed here.