Benzinga | Oct 21, 2020 10:15AM EDT

Preview: Schnitzer Steel Indus's Earnings

On Thursday, October 22, Schnitzer Steel Indus (NASDAQ: SCHN) will release its latest earnings report. Benzinga's outlook for Schnitzer Steel Indus is included in the following report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings, also known as net income, is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Schnitzer Steel Indus earnings will be near $0.13 per share on sales of $412.60 million, according to analysts. Schnitzer Steel Indus EPS in the same period a year ago totaled $0.42. Sales were $547.80 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Thursday, earnings would be down 69.05%. Sales would be down 24.68% from the year-ago period. Schnitzer Steel Indus's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019EPS Estimate -0.12 0.24 -0.16 0.41EPS Actual 0.05 0.31 -0.17 0.42Revenue Estimate 368.60 M 432.02 M 427.38 M 548.24 MRevenue Actual 403.00 M 439.48 M 405.58 M 547.80 M

Stock Performance

Over the last 52-week period, shares are up 5.09%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.