On Monday, February 08, Everest Re Group (NYSE:RE) will release its latest earnings report. Benzinga's outlook for Everest Re Group 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
Sell-side analysts are expecting Everest Re Group's loss per share to be near $0.74 on sales of $2.32 billion. In the same quarter last year, Everest Re Group reported EPS of $3.2 on revenue of $1.95 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
The analyst consensus estimate would represent a 123.12% decrease in the company's earnings. Sales would be up 19.1% from the year-ago period. Everest Re Group's reported EPS has stacked up against analyst estimates in the past like this:
Shares of Everest Re Group were trading at $220.92 as of February 04. Over the last 52-week period, shares are down 21.91%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Everest Re Group is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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