WR Berkley's Earnings: A Preview

WR Berkley WRB releases its next round of earnings this Tuesday, April 20. Here is Benzinga's essential guide to WR Berkley's Q1 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

WR Berkley EPS is expected to be around $0.81, according to sell-side analysts. Sales will likely be near $2.11 billion. WR Berkley earnings in the same period a year ago was $0.69 per share. Quarterly sales came in at $1.81 billion.

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.

The Wall Street consensus estimate for earnings would represent a 17.39% increase for the company. Sales would be up 16.51% from the same quarter last year. Here is how the WR Berkley's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 50.09%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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