Earnings Preview: Shaw Communications

Shaw Communications SJR unveils its next round of earnings this Wednesday, June 30. Get prepared with Benzinga's ultimate preview for Shaw Communications's Q3 earnings.

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

Analysts predict Shaw Communications will report earnings of $0.22 per share on revenue of $1.01 billion. In the same quarter last year, Shaw Communications reported EPS of $0.27 on revenue of $970.88 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, earnings would be down 18.52%. Revenue would be up 4.03% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Shaw Communications were trading at $28.84 as of June 28. Over the last 52-week period, shares are up 76.22%. 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. Shaw Communications is scheduled to hold the call at 09:30:00 ET and can be accessed here.