Benzinga | Oct 22, 2020 10:10AM EDT

Preview: Barnes Gr's Earnings

Barnes Gr (NYSE: B) announces its next round of earnings this Friday, October 23. Here is Benzinga's everything-that-matters guide for this Friday's Q3 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

Wall Street expects EPS of $0.28 and sales around $245.62 million. Barnes Gr EPS in the same period a year ago totaled $0.89. Sales were $372.59 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.

The analyst consensus estimate would represent a 68.54% decrease in the company's earnings. Revenue would be down 34.08% from the same quarter last year. Barnes Gr's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.22 0.49 0.84 0.79EPS Actual 0.27 0.71 0.86 0.89Revenue Estimate 242.00 M 316.73 M 376.23 M 379.33 MRevenue Actual 235.54 M 330.67 M 370.17 M 372.59 M

Stock Performance

Over the past 52-week period, shares of Barnes Gr have declined 31.33%.

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