SVB Financial SIVB releases its next round of earnings this Thursday, July 22. Here is Benzinga's essential guide to SVB Financial's Q2 earnings report.
What Are Earnings, Net Income, 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
SVB Financial EPS is expected to be around $6.5, according to sell-side analysts. Sales will likely be near $1.14 billion. SVB Financial earnings in the same period a year ago was $4.42 per share. Quarterly sales came in at $881.77 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.
If the company were to match the consensus estimate when it reports Thursday, earnings would be up 47.06%. Sales would be up 29.28% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 6.47 | 3.83 | 5.14 | 3.11 |
| EPS Actual | 10.03 | 7.40 | 8.47 | 4.42 |
| Revenue Estimate | 1.19 B | 863.58 M | 888.60 M | 751.12 M |
| Revenue Actual | 1.40 B | 1.21 B | 1.07 B | 881.77 M |
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
Over the last 52-week period, shares are up 153.79%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. SVB Financial is scheduled to hold the call at 18:00:00 ET and can be accessed here.
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