Transocean Earnings Preview

On Monday, August 02, Transocean RIG will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Transocean EPS loss is expected to be around $0.16, according to sell-side analysts. Sales will likely be near $675.89 million. The company saw a bottom-line number of $0.0 per share on sales of $930.00 million during the same period last year.

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 post earnings in line with the consensus estimate when it reports Monday, EPS would be down 0%. Sales would be down 27.32% from the year-ago period. Here is how the Transocean'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 Transocean were trading at $3.67 as of July 29. Over the last 52-week period, shares are up 71.6%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Transocean is scheduled to hold the call at 09:00:00 ET and can be accessed here.