Earnings Preview: Polaris

Polaris PII announces its next round of earnings this Tuesday, July 27. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 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

Polaris EPS is expected to be around $2.18, according to sell-side analysts. Sales will likely be near $2.10 billion. In the same quarter last year, Polaris reported earnings per share of $1.3 on revenue of $1.51 billion.

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.

The analyst consensus estimate would represent a 67.69% increase in the company's EPS figure. Revenue would be have grown 39.07% from the same quarter last year. Here is how the company'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 Polaris were trading at $134.22 as of July 23. Over the last 52-week period, shares are up 31.81%. 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. Polaris is scheduled to hold the call at 10:00:00 ET and can be accessed here.