Benzinga | Jan 20, 2021 10:15AM EST

Banc of California's Earnings: A Preview

On Thursday, January 21, Banc of California (NYSE:BANC) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Sell-side analysts expect Banc of California's EPS to be near $0.18 on sales of $58.16 million. In the same quarter last year, Banc of California announced EPS of $0.2 on revenue of $56.66 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 report earnings in line when it publishes results Thursday, quarterly profit would be down 10.0%. Revenue would be up 2.65% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.15 -0.39 0.04 0.17EPS Actual 0.24 -0.44 -0.19 0.20Revenue Estimate 59.06 M 55.34 M 56.73 M 58.56 MRevenue Actual 55.85 M 55.31 M 51.86 M 56.66 M

Stock Performance

Over the last 52-week period, shares are up 1.08%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Banc of California is scheduled to hold the call at 13:00:00 ET and can be accessed here.