Toro (NYSE:TTC) unveils its next round of earnings this Wednesday, December 16. Get prepared with Benzinga's ultimate preview for Toro's Q4 earnings.
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 Toro modeled for quarterly EPS of $0.52 on revenue of $772.14 million. Toro EPS in the same period a year ago totaled $0.48. Sales were $734.38 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.
The analyst consensus estimate would represent a 8.33% increase in the company's earnings. Sales would be up 5.14% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
Shares of Toro were trading at $91.6 as of December 14. Over the last 52-week period, shares are up 22.31%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Toro is scheduled to hold the call at 11:00:00 ET and can be accessed here.
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