Benzinga | Jan 13, 2021 10:16AM EST

Earnings Outlook for First Republic Bank

First Republic Bank (NYSE:FRC) unveils its next round of earnings this Thursday, January 14. Get prepared with Benzinga's ultimate preview for First Republic Bank's Q4 earnings.

Net Income, Earnings, 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

First Republic Bank EPS is expected to be around $1.52, according to sell-side analysts. Sales will likely be near $1.02 billion. In the same quarter last year, First Republic Bank reported earnings per share of $1.39 on revenue of $877.46 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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 9.35%. Revenue would be up 16.24% from the year-ago period. First Republic Bank's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.39 1.17 1.02 1.27EPS Actual 1.61 1.40 1.20 1.39Revenue Estimate 955.96 M 912.52 M 873.29 M 857.80 MRevenue Actual 1.00 B 918.98 M 916.18 M 877.46 M

Stock Performance

Shares of First Republic Bank were trading at $163.4 as of January 12. Over the last 52-week period, shares are up 35.51%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. First Republic Bank is scheduled to hold the call at 10:00:00 ET and can be accessed here.