Benzinga | Jan 20, 2021 10:16AM EST

Home BancShares's Earnings Outlook

Home BancShares (NASDAQ:HOMB) will be releasing its next round of earnings this Thursday, January 21. For all of the relevant information, here is your guide for 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

Analysts predict Home BancShares will report earnings of $0.4 per share on revenue of $172.08 million. Home BancShares reported a per-share profit of $0.44 when it published results during the same quarter last year. Sales in that period totaled $167.81 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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 9.09%. Revenue would be up 2.54% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.39 0.26 0.36 0.42EPS Actual 0.42 0.38 0 0.44Revenue Estimate 172.87 M 165.62 M 163.24 M 164.69 MRevenue Actual 176.09 M 173.69 M 162.65 M 167.81 M

Stock Performance

Over the last 52-week period, shares of Home BancShares are up 6.61%.

Do not be surprised to see the stock move on comments made during its conference call. Home BancShares is scheduled to hold the call at 14:00:00 ET and can be accessed here.