Benzinga | Jan 22, 2021 10:17AM EST

A Preview Of Bank of Marin's Earnings

Bank of Marin (NASDAQ:BMRC) announces its next round of earnings this Monday, January 25. Here is Benzinga's look at Bank of Marin's Q4 earnings report.

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

Bank of Marin earnings will be near $0.48 per share on sales of $23.99 million, according to analysts. In the same quarter last year, Bank of Marin reported EPS of $0.66 on revenue of $23.89 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 27.27% decrease in the company's earnings. Sales would be have grown 0.4% 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 0.52 0.41 0.51 0.62EPS Actual 0.55 0.46 0.53 0.66Revenue Estimate 25.47 M 23.97 M 24.50 M 25.60 MRevenue Actual 24.57 M 24.38 M 24.12 M 23.89 M

Stock Performance

Shares of Bank of Marin were trading at $39.47 as of January 21. Over the last 52-week period, shares are down 7.19%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Bank of Marin is scheduled to hold the call at 11:30:00 ET and can be accessed here.