Universal Stainless (NASDAQ: USAP) announces its next round of results this Wednesday, April 21. This is Benzinga’s analysis of Universal Stainless’s first quarter earnings report.
Net income, earnings and earnings per share
Earnings and earnings per share (EPS) are useful indicators of a company’s profitability. Total earnings, also known as net income, equals total income minus total expenses. EPS is net income divided by the number of shares outstanding.
Earnings and income
Selling-side analysts expect Universal Stainless’s loss per share to be around -0.64 on sales of $ 33.89 million. Universal Stainless EPS for the same period last year posted a loss of 0.16. Revenues were $ 58.49 million.
What are analyst estimates and surprise earnings and why are they important?
Wall Street analysts studying this company will publish analyst estimates of earnings and EPS. The averages of earnings and EPS estimates from all analysts are called the “consensus estimates”; These consensus estimates can have a significant effect on a company’s performance during earnings reporting.
When a company publishes earnings or earnings above or below consensus estimates, it is said to have posted “surprise earnings,” which can cause significant movements in the stock depending on the difference between actual and estimated values.
Wall Street estimates would represent a 300.0% decrease in the company’s earnings. Sales would drop 42.06% compared to the same period of the previous year. The company’s reported EPS has been in line with analyst estimates in the past as follows:
| Trimester | Fourth Quarter 2021 | Third Quarter 2020 | Second Quarter 2020 | First Quarter 2020 |
|---|---|---|---|---|
| EPS Estimation | -0,620 | -0,360 | -0,280 | -0,060 |
| Real EPS | -0,520 | -0,440 | -0,270 | -0,160 |
| Income Estimate | 35.51 million | 39.40 million | 47.89 million | 58.73 million |
| Real Income | 31.32 million | 37.43 million | 52.48 million | 58.49 million |
Stock performance
Over the last 52 week period, the stock has risen 33.87%. Given that these returns are generally positive, long-term shareholders can relax with this earnings release. Long-term shareholders already enjoy 12-month earnings before the announcement.
Don’t be surprised to see stock movement in the comments made during your conference call. The Universal Stainless conference call is scheduled for 10:00:00 ET and you can access it here: https://edge.media-server.com/mmc/p/cxrhz546
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