A Preview Of PagSeguro Digital's Earnings

PagSeguro Digital PAGS releases its next round of earnings this Thursday, August 12. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.

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 expect PagSeguro Digital's EPS to be near $0.22 on sales of $430.33 million. In the same quarter last year, PagSeguro Digital reported earnings per share of $0.17 on sales of $252.88 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 Thursday, EPS would be up 29.41%. Revenue would be have grown 70.17% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

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 PagSeguro Digital were trading at $57.8 as of August 10. Over the last 52-week period, shares are up 42.35%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

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