ModivCare's Earnings: A Preview

ModivCare MODV releases its next round of earnings this Friday, May 07. Get the latest predictions in Benzinga's essential guide to the company'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

Analysts expect ModivCare earnings of $1.6 per share. Revenue will likely be around $483.06 million, according to the consensus estimate. ModivCare EPS in the same period a year ago totaled $0.58. Revenue was $367.29 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 report earnings in line when it publishes results Friday, earnings would be up 175.86%. Sales would be up 31.52% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of ModivCare were trading at $140.14 as of May 05. Over the last 52-week period, shares are up 128.0%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. ModivCare is scheduled to hold the call at 08:00:00 ET and can be accessed here.