Earnings Preview: KeyCorp

KeyCorp KEY announces its next round of earnings this Tuesday, April 20. Here is Benzinga's everything-that-matters guide for this Tuesday's Q1 earnings announcement.

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

Based on KeyCorp management projections, analysts predict EPS of $0.48 on revenue of $1.69 billion. In the same quarter last year, KeyCorp reported EPS of $0.12 on revenue of $1.47 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be up 300.0%. Sales would be up 15.28% on a year-over-year basis. KeyCorp's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of KeyCorp were trading at $20.67 as of April 16. Over the last 52-week period, shares are up 102.91%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. KeyCorp is scheduled to hold the call at 10:00:00 ET and can be accessed here.