Benzinga | Jan 22, 2021 10:16AM EST

A Preview Of Crane's Earnings

Crane (NYSE:CR) unveils its next round of earnings this Monday, January 25. Get prepared with Benzinga's ultimate preview for Crane's Q4 earnings.

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 management's projections, Crane analysts model for earnings of $1.1 per share on sales of $737.92 million. In the same quarter last year, Crane reported EPS of $1.58 on revenue of $837.50 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

The analyst consensus estimate would represent a 30.38% decrease in the company's earnings. Revenue would have fallen 11.89% from the same quarter last year. Crane's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.79 0.45 1.25 1.57EPS Actual 1.05 0.64 1.15 1.58Revenue Estimate 670.69 M 623.02 M 820.76 M 824.22 MRevenue Actual 734.80 M 677.90 M 797.90 M 837.50 M

Stock Performance

Shares of Crane were trading at $81.22 as of January 21. Over the last 52-week period, shares are down 4.41%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

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