Earnings Preview for Donegal Group
Donegal Group (NASDAQ:DGICA) releases its next round of earnings this Tuesday, February 23. Here is Benzinga's essential guide to Donegal Group's Q4 earnings report.
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
Analysts expect Donegal Group earnings of $0.33 per share. Revenue will likely be around $193.86 million, according to the consensus estimate. Donegal Group reported a profit of $0.42 per share when it published results during the same quarter last year. Sales in that period totaled $200.94 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 report earnings in line when it publishes results Tuesday, earnings would be down 21.43%. Sales would have fallen 3.52% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
EPS Estimate | 0.24 | 0.26 | 0.28 | 0.25 |
EPS Actual | 0.32 | 0.61 | 0.43 | 0.42 |
Revenue Estimate | 194.72 M | 192.37 M | 198.24 M | 197.00 M |
Revenue Actual | 196.51 M | 198.90 M | 184.91 M | 200.94 M |
Stock Performance
Shares of Donegal Group were trading at $14 as of February 19. Over the last 52-week period, shares are down 5.03%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Donegal Group is scheduled to hold the call at 11:00:00 ET and can be accessed here.
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