A Preview Of Pennant Park Investment's Earnings

Pennant Park Investment PNNT unveils its next round of earnings this Wednesday, May 05. Get prepared with Benzinga's ultimate preview for Pennant Park Investment's Q2 earnings.

Net Income, Earnings, 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

Pennant Park Investment earnings will be near $0.13 per share on sales of $19.33 million, according to analysts. Pennant Park Investment reported a profit of $0.15 per share when it published results during the same quarter last year. Sales in that period totaled $27.54 million.

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 when it reports Wednesday, earnings would be down 13.33%. Sales would be down 29.8% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 114.67%. 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. Pennant Park Investment is scheduled to hold the call at 12:00:00 ET and can be accessed here.