Benzinga | Nov 18, 2020 10:08AM EST

Earnings Outlook for Maximus

Maximus (NYSE: MMS) announces its next round of earnings this Thursday, November 19. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

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

Based on Maximus management projections, analysts predict EPS of $0.89 on revenue of $862.05 million. In the same quarter last year, Maximus announced EPS of $0.93 on revenue of $754.97 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.

If the company were to report earnings in line when it publishes results Thursday, earnings would be down 4.3%. Revenue would be up 14.18% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019EPS Estimate 0.78 0.82 0.91 0.94EPS Actual 0.93 0.82 0.91 0.93Revenue Estimate 801.30 M 770.27 M 795.66 M 756.39 MRevenue Actual 901.34 M 818.13 M 818.23 M 754.97 M

Stock Performance

Over the past 52-week period, shares of Maximus have declined 0.67%. 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. Maximus is scheduled to hold the call at 09:00:00 ET and can be accessed here.