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GrafTech International's Earnings: A Preview

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GrafTech International (NYSE:EAF) releases its next round of earnings this Friday, February 05. Here is Benzinga's essential guide to GrafTech International'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

Wall Street analysts see GrafTech International reporting earnings of $0.4 per share on revenue of $300.16 million. In the same quarter last year, GrafTech International reported earnings per share of $0.61 on sales of $414.61 million.

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.

View more earnings on EAF

If the company were to match the consensus estimate when it reports Friday, EPS would have fallen 34.43%. Sales would be down 27.6% 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

0.35

0.22

0.48

0.55

EPS Actual

0.35

0.35

0.45

0.61

Revenue Estimate

268.27 M

226.33 M

353.00 M

402.45 M

Revenue Actual

286.99 M

280.72 M

318.65 M

414.61 M

Stock Performance

Shares of GrafTech International were trading at $10.12 as of February 03. Over the last 52-week period, shares are down 5.07%. 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. GrafTech International is scheduled to hold the call at 10:00:00 ET and can be accessed here.

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