Synovus Financial's Earnings: A Preview

Synovus Financial SNV announces its next round of earnings this Tuesday, July 20. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 earnings announcement.

What Are Earnings, Net Income, 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

Wall Street analysts see Synovus Financial reporting earnings of $1.04 per share on revenue of $489.29 million. In the same quarter last year, Synovus Financial reported EPS of $0.23 on revenue of $550.05 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 post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 352.17%. Sales would be down 11.05% on a year-over-year basis. Here is how the Synovus Financial's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Synovus Financial were trading at $42.49 as of July 16. Over the last 52-week period, shares are up 98.11%. 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. Synovus Financial is scheduled to hold the call at 08:30:00 ET and can be accessed here.