WR Berkley Earnings Preview

WR Berkley WRB releases its next round of earnings this Thursday, July 22. Here is Benzinga's essential guide to WR Berkley's Q2 earnings report.

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 WR Berkley will report earnings of $0.94 per share on revenue of $2.16 billion. In the same quarter last year, WR Berkley reported earnings per share of $0.06 on revenue of $1.94 billion.

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 Thursday, earnings would be up 1466.67%. Revenue would be up 11.57% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of WR Berkley were trading at $75.85 as of July 20. Over the last 52-week period, shares are up 19.3%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. WR Berkley is scheduled to hold the call at 17:00:00 ET and can be accessed here.