Benzinga | Jan 20, 2021 10:13AM EST

M&T Bank's Earnings Outlook

M&T Bank (NYSE:MTB) 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.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering M&T Bank modeled for quarterly EPS of $3.03 on revenue of $1.46 billion. In the same quarter last year, M&T Bank reported EPS of $3.62 on revenue of $1.53 billion.

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.

The analyst consensus estimate would represent a 16.3% decrease in the company's earnings. Sales would be down 4.58% from the year-ago period. 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 2.60 1.59 2.47 3.47EPS Actual 2.75 1.76 1.95 3.62Revenue Estimate 1.46 B 1.47 B 1.48 B 1.52 BRevenue Actual 1.46 B 1.44 B 1.51 B 1.53 B

Stock Performance

Over the past 52-week period, shares of M&T Bank have declined 14.97%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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