Benzinga | Jan 25, 2021 10:08AM EST

Hanmi Financial's Earnings: A Preview

Hanmi Financial (NASDAQ:HAFC) announces its next round of earnings this Tuesday, January 26. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 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, Hanmi Financial analysts model for earnings of $0.35 per share on sales of $53.27 million. In the same quarter last year, Hanmi Financial reported earnings per share of $0.33 on sales of $50.65 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 6.06% increase in the company's EPS figure. Revenue would be up 5.18% from the year-ago period. 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 0.26 0.15 0.30 0.44EPS Actual 0.48 0.30 0.08 0.33Revenue Estimate 52.68 M 49.57 M 49.22 M 51.27 MRevenue Actual 52.74 M 65.37 M 50.20 M 50.65 M

Stock Performance

Over the last 52-week period, shares are down 35.55%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hanmi Financial is scheduled to hold the call at 17:00:00 ET and can be accessed here.