Benzinga | Nov 4, 2020 10:03AM EST

A Preview Of ANGI Homeservices's Earnings

ANGI Homeservices (NASDAQ: ANGI) will be releasing its next round of earnings this Thursday, November 05. For all of the relevant information, here is your guide for Thursday's Q3 earnings announcement.

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

Analysts expect ANGI Homeservices earnings of $0.01 per share. Revenue will likely be around $392.50 million, according to the consensus estimate. In the same quarter last year, ANGI Homeservices reported EPS of $0.04 on revenue of $357.36 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, earnings would be down 75.0%. Sales would be have grown 9.83% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.01 -0.03 0 0.02EPS Actual 0.02 -0.02 0 0.04Revenue Estimate 363.44 M 348.22 M 325.44 M 355.87 MRevenue Actual 375.06 M 343.65 M 321.51 M 357.36 M

Stock Performance

Shares of ANGI Homeservices were trading at $10.97 as of November 03. Over the last 52-week period, shares are up 43.69%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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