Preview: TechnipFMC's Earnings
On Wednesday, February 24, TechnipFMC (NYSE:FTI) will release its latest earnings report. Benzinga's outlook for TechnipFMC is included in the following report.
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
Analysts covering TechnipFMC modeled for quarterly EPS of $0.2 on revenue of $3.38 billion. TechnipFMC EPS in the same period a year ago totaled $0.03. Sales were $3.73 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.
If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 566.67%. Revenue would be down 9.31% 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 | 0.22 | 0.06 | 0.22 | 0.42 |
EPS Actual | 0.16 | 0.09 | -0.11 | 0.03 |
Revenue Estimate | 3.29 B | 3.11 B | 3.37 B | 3.81 B |
Revenue Actual | 3.34 B | 3.16 B | 3.13 B | 3.73 B |
Stock Performance
Shares of TechnipFMC were trading at $7.21 as of February 22. Over the last 52-week period, shares are down 55.35%. 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. TechnipFMC is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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