Earnings Preview: First Merchants

First Merchants FRME announces its next round of earnings this Monday, July 26. Here is Benzinga's everything-that-matters guide for this Monday's Q2 earnings announcement.

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

First Merchants EPS is expected to be around $0.92, according to sell-side analysts. Sales will likely be near $131.71 million. In the same quarter last year, First Merchants reported EPS of $0.62 on revenue of $119.50 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 post earnings in line with the consensus estimate when it reports Monday, EPS would be up 48.39%. Revenue would be up 10.22% from the year-ago period. Here is how the First Merchants's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of First Merchants were trading at $39.39 as of July 22. Over the last 52-week period, shares are up 62.78%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. First Merchants is scheduled to hold the call at 14:30:00 ET and can be accessed here.