Benzinga | Nov 13, 2020 10:10AM EST

Preview: Star Bulk Carriers's Earnings

On Monday, November 16, Star Bulk Carriers (NASDAQ: SBLK) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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

Star Bulk Carriers EPS will likely be near $0.27 while revenue will be around $157.09 million, according to analysts. Star Bulk Carriers EPS in the same period a year ago totaled $0.18. Sales were $248.44 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 match the consensus estimate when it reports Monday, EPS would be up 50.0%. Sales would be down 36.77% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.30 -0.02 0.29 0.17EPS Actual -0.19 -0.23 0.36 0.18Revenue Estimate 101.63 M 129.52 M 176.66 M 164.72 MRevenue Actual 136.13 M 160.86 M 248.64 M 248.44 M

Stock Performance

Over the last 52-week period, shares are down 29.15%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Star Bulk Carriers is scheduled to hold the call at 11:00:00 ET and can be accessed here.