Earnings Outlook for Ardmore Shipping

Ardmore Shipping ASC announces its next round of earnings this Wednesday, May 05. Here is Benzinga's look at Ardmore Shipping's Q1 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

Based on Ardmore Shipping management projections, analysts predict EPS of $0.31 on revenue of $24.86 million. In the same quarter last year, Ardmore Shipping reported earnings per share of $0.2 on sales of $41.53 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 255.0%. Sales would be down 40.14% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Ardmore Shipping were trading at $4.24 as of May 03. Over the last 52-week period, shares are down 24.6%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ardmore Shipping is scheduled to hold the call at 10:30:00 ET and can be accessed here.