Earnings Preview for PagSeguro Digital

PagSeguro Digital PAGS unveils its next round of earnings this Wednesday, June 02. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

PagSeguro Digital earnings will be near $0.19 per share on sales of $361.36 million, according to analysts. In the same quarter last year, PagSeguro Digital posted EPS of $0.25 on sales of $358.73 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 match the consensus estimate when it reports Wednesday, earnings would be down 24.0%. Revenue would be have grown 0.73% from the same quarter last year. PagSeguro Digital's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of PagSeguro Digital were trading at $49.11 as of May 31. Over the last 52-week period, shares are up 45.21%. 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. PagSeguro Digital is scheduled to hold the call at 17:00:00 ET and can be accessed here.