Benzinga | Jan 5, 2021 10:17AM EST

MSC Industrial Direct Co's Earnings: A Preview

MSC Industrial Direct Co (NYSE:MSM) unveils its next round of earnings this Wednesday, January 06. Here is Benzinga's everything-that-matters guide for the 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

MSC Industrial Direct Co EPS is expected to be around $1.08, according to sell-side analysts. Sales will likely be near $769.80 million. In the same quarter last year, MSC Industrial Direct Co reported EPS of $1.21 on revenue of $823.60 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.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 10.74%. Sales would be down 6.53% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.96 1.1 1 1.17EPS Actual 1.09 1.4 1 1.21Revenue Estimate 750.72 M 807.94 M 789.68 M 818.98 MRevenue Actual 747.73 M 834.97 M 786.09 M 823.60 M

Stock Performance

Over the last 52-week period, shares are up 8.46%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. MSC Industrial Direct Co is scheduled to hold the call at 08:30:00 ET and can be accessed here.