Benzinga | Jan 20, 2021 10:12AM EST

Earnings Preview for Associated Banc

Associated Banc (NYSE:ASB) announces its next round of earnings this Thursday, January 21. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 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 Associated Banc management projections, analysts predict EPS of $0.31 on revenue of $272.70 million. In the same quarter last year, Associated Banc reported earnings per share of $0.43 on sales of $293.08 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.

If the company were to match the consensus estimate when it reports Thursday, earnings would be down 27.91%. Revenue would have fallen 6.95% from the same quarter last year. Associated Banc's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.20 0.31 0.10 0.42EPS Actual 0.24 0.26 0.28 0.43Revenue Estimate 269.35 M 296.34 M 294.55 M 299.13 MRevenue Actual 257.69 M 444.36 M 301.25 M 293.08 M

Stock Performance

Over the past 52-week period, shares of Associated Banc have declined 5.98%.

Do not be surprised to see the stock move on comments made during its conference call. Associated Banc is scheduled to hold the call at 17:00:00 ET and can be accessed here.