Earnings Preview: Target Hospitality

On Monday, May 24, Target Hospitality TH will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Sell-side analysts are expecting Target Hospitality's loss per share to be near $0.09 on sales of $40.93 million. In the same quarter last year, Target Hospitality reported EPS of $0.05 on revenue of $71.66 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 280.0% decline in the company's earnings. Revenue would have fallen 42.88% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Target Hospitality were trading at $3.39 as of July 13. Over the last 52-week period, shares are up 120.51%. 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. Target Hospitality is scheduled to hold the call at 09:00:00 ET and can be accessed here.