On Tuesday, January 26, Polaris PII will release its latest earnings report. Here is Benzinga's outlook for the company.
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
Polaris EPS is expected to be around $2.9, according to sell-side analysts. Sales will likely be near $2.11 billion. Polaris EPS in the same period a year ago totaled $1.83. Revenue was $1.74 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, earnings would be up 58.47%. Revenue would be up 21.54% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
---|---|---|---|---|
EPS Estimate | 2.19 | 0.57 | 0.55 | 1.79 |
EPS Actual | 2.85 | 1.30 | 0.22 | 1.83 |
Revenue Estimate | 1.93 B | 1.35 B | 1.41 B | 1.76 B |
Revenue Actual | 1.95 B | 1.51 B | 1.41 B | 1.74 B |
Stock Performance
Over the last 52-week period, shares are up 25.38%. 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. Polaris is scheduled to hold the call at 10:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.