Benzinga | Jan 21, 2021 10:08AM EST

Earnings Preview for World Acceptance

World Acceptance (NASDAQ:WRLD) announces its next round of earnings this Friday, January 22. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

What Are Earnings, Net Income, 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

World Acceptance EPS is expected to be around $0.69, according to sell-side analysts. Sales will likely be near $133.57 million. World Acceptance EPS in the same period a year ago totaled $0.29. Revenue was $147.08 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.

The analyst consensus estimate would represent a 137.93% increase in the company's EPS figure. Revenue would have fallen 9.18% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020EPS Estimate 0.70 -0.08 2.03 0.47EPS Actual 1.96 2.24 3.24 0.29Revenue Estimate 124.66 M 140.67 M 163.09 M 152.69 MRevenue Actual 124.44 M 123.87 M 163.04 M 147.08 M

Stock Performance

Over the last 52-week period, shares are up 34.53%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. World Acceptance is scheduled to hold the call at 10:00:00 ET and can be accessed here.