Earnings Outlook for Matthews International
On Thursday, January 28, Matthews International (NASDAQ:MATW) will release its latest earnings report. Benzinga's outlook for Matthews International is included in the following report.
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
Based on Matthews International management projections, analysts predict EPS of $0.42 on revenue of $359.36 million. Matthews International earnings in the same period a year ago was $0.47 per share. Quarterly sales came in at $364.94 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 match the consensus estimate when it reports Thursday, earnings would be down 10.64%. Revenue would be down 1.53% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | 0.85 | 0.63 | 0.38 | 0.45 |
EPS Actual | 1.11 | 0.80 | 0.63 | 0.47 |
Revenue Estimate | 369.63 M | 353.29 M | 369.30 M | 357.52 M |
Revenue Actual | 399.14 M | 359.42 M | 374.80 M | 364.94 M |
Stock Performance
Shares of Matthews International were trading at $31.54 as of January 26. Over the last 52-week period, shares are down 18.02%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Matthews International is scheduled to hold the call at 09:00:00 ET and can be accessed here.
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