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On Friday, January 29, Church & Dwight Co (NYSE:CHD) will release its latest earnings report. Check out Benzinga's preview to understand the implications.
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
Based on Church & Dwight Co management projections, analysts predict EPS of $0.52 on revenue of $1.26 billion. In the same quarter last year, Church & Dwight Co reported EPS of $0.55 on revenue of $1.14 billion.
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.
The analyst consensus estimate would represent a 5.45% decline in the company's EPS figure. Revenue would be have grown 10.14% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
Shares of Church & Dwight Co were trading at $87.8 as of January 27. Over the last 52-week period, shares are up 17.21%. 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. Church & Dwight Co is scheduled to hold the call at 10:00:00 ET and can be accessed here.
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