On Thursday, May 20, CSW Industrials CSWI will release its latest earnings report. Check out Benzinga's preview to understand the implications.
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
CSW Industrials EPS is expected to be around $0.97, according to sell-side analysts. Sales will likely be near $115.69 million. CSW Industrials reported a profit of $0.83 per share when it published results during the same quarter last year. Sales in that period totaled $98.50 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 analyst consensus estimate would represent a 16.87% increase in the company's earnings. Sales would be up 17.45% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2021 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.34 | 0.95 | 0.58 | 0.75 |
| EPS Actual | 0.59 | 1.10 | 0.81 | 0.83 |
| Revenue Estimate | 75.32 M | 101.20 M | 81.23 M | 95.56 M |
| Revenue Actual | 89.93 M | 104.94 M | 90.96 M | 98.50 M |
Stock Performance
Shares of CSW Industrials were trading at $124.33 as of May 18. Over the last 52-week period, shares are up 85.95%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. CSW Industrials is scheduled to hold the call at 10:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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