Benzinga | Oct 29, 2020 10:13AM EDT

Earnings Outlook for RBC Bearings

RBC Bearings (NASDAQ: ROLL) announces its next round of earnings this Friday, October 30. Here is Benzinga's everything-that-matters guide for this Friday's Q2 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 RBC Bearings management projections, analysts predict EPS of $0.87 on revenue of $150.54 million. In the same quarter last year, RBC Bearings announced EPS of $1.3 on revenue of $181.91 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 Friday, earnings would be down 33.08%. Revenue would have fallen 17.24% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019EPS Estimate 0.87 1.33 1.24 1.22EPS Actual 0.95 1.33 1.22 1.30Revenue Estimate 153.60 M 183.29 M 178.71 M 181.08 MRevenue Actual 156.49 M 185.84 M 177.02 M 181.91 M

Stock Performance

Shares of RBC Bearings were trading at $115.67 as of October 28. Over the last 52-week period, shares are down 29.23%. 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. RBC Bearings is scheduled to hold the call at 11:00:00 ET and can be accessed here.