Range Resources Earnings Preview

On Monday, April 26, Range Resources RRC will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Wall Street analysts see Range Resources reporting earnings of $0.25 per share on sales of $561.37 million. In the same quarter last year, Range Resources reported EPS of $0.04 on revenue of $560.67 million.

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.

If the company were to match the consensus estimate when it reports Monday, earnings would be up 525.0%. Sales would be up 0.12% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

For a full 12 months, the return has risen by 61.66%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. Range Resources is scheduled to hold the call at 09:00:00 ET and can be accessed here.