Benzinga | Nov 23, 2020 10:18AM EST

Earnings Preview for American Woodmark

On Tuesday, November 24, American Woodmark (NASDAQ: AMWD) will release its latest earnings report. Benzinga's outlook for American Woodmark is included in the following report. 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

Sell-side analysts expect American Woodmark's EPS to be near $1.85 on sales of $448.06 million. In the same quarter last year, American Woodmark announced EPS of $1.84 on revenue of $428.02 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

The Wall Street consensus estimate for earnings would represent a 0.54% increase for the company. Revenue would be up 4.68% on a year-over-year basis. Here is how the American Woodmark's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019EPS Estimate 1.33 1.51 1.46 1.71EPS Actual 1.66 1.33 1.30 1.84Revenue Estimate 383.60 M 373.22 M 402.00 M 428.37 MRevenue Actual 390.09 M 399.20 M 395.75 M 428.02 M

Stock Performance

Shares of American Woodmark were trading at $98.45 as of November 20. Over the last 52-week period, shares are down 0.26%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

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