Benzinga | Jan 20, 2021 10:19AM EST

Earnings Outlook for Signature Bank

Signature Bank (NASDAQ:SBNY) unveils its next round of earnings this Thursday, January 21. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Based on management's projections, Signature Bank analysts model for earnings of $2.89 per share on sales of $419.43 million. In the same quarter last year, Signature Bank reported EPS of $2.78 on revenue of $345.58 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, EPS would be up 3.96%. Sales would be up 21.37% from the same quarter last year. 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 2.76 2.24 2.18 2.70EPS Actual 2.62 2.21 1.88 2.78Revenue Estimate 421.41 M 389.14 M 343.48 M 336.53 MRevenue Actual 412.93 M 399.80 M 362.44 M 345.58 M

Stock Performance

Over the last 52-week period, shares are up 5.0%. 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. Signature Bank is scheduled to hold the call at 10:00:00 ET and can be accessed here.