Benzinga | Dec 16, 2020 10:04AM EST

Worthington Industries's Earnings: A Preview

Worthington Industries (NYSE:WOR) will be releasing its next round of earnings this Thursday, December 17. For all of the relevant information, here is your guide for Thursday'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 management's projections, Worthington Industries analysts model for earnings of $0.68 per share on sales of $688.30 million. In the same quarter last year, Worthington Industries announced EPS of $0.69 on revenue of $827.64 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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 1.45%. Sales would have fallen 16.84% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019EPS Estimate 0.44 0.25 0.67 0.58EPS Actual 0.64 0.49 0.64 0.69Revenue Estimate 594.40 M 669.70 M 775.50 M 786.60 MRevenue Actual 702.91 M 611.63 M 764.00 M 827.64 M

Stock Performance

Shares of Worthington Industries were trading at $53.84 as of December 15. Over the last 52-week period, shares are up 22.31%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Worthington Industries is scheduled to hold the call at 14:00:00 ET and can be accessed here.