Earnings Outlook For Corporacion America

On Wednesday, May 19, Corporacion America CAAP 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

Analysts are expecting Corporacion America to report a loss of $0.26 per share. Revenue will likely be around $124.40 million, according to the consensus estimate. In the same quarter last year, Corporacion America posted EPS of $0.09 on sales of $302.80 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.

If the company were to match the consensus estimate when it reports Wednesday, EPS would have fallen 188.89%. Sales would have fallen 58.92% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Corporacion America were trading at $5.86 as of May 17. Over the last 52-week period, shares are up 168.33%. 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. Corporacion America is scheduled to hold the call at 09:00:00 ET and can be accessed here.