Change Healthcare CHNG releases its next round of earnings this Wednesday, May 26. Get the latest predictions in Benzinga's essential guide to the company's Q4 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
Based on Change Healthcare management projections, analysts predict EPS of $0.36 on revenue of $840.53 million. Change Healthcare reported a per-share profit of $0.42 when it published results during the same quarter last year. Sales in that period totaled $843.38 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 report earnings in line when it publishes results Wednesday, quarterly profit would be down 14.29%. Revenue would be down 0.34% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2021 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.30 | 0.25 | 0.15 | 0.38 |
| EPS Actual | 0.34 | 0.32 | 0.25 | 0.42 |
| Revenue Estimate | 783.86 M | 738.75 M | 651.98 M | 835.14 M |
| Revenue Actual | 785.14 M | 755.94 M | 694.18 M | 843.38 M |
Stock Performance
Shares of Change Healthcare were trading at $22.81 as of May 24. Over the last 52-week period, shares are up 82.07%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Change Healthcare is scheduled to hold the call at 08:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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