Benzinga | Jan 26, 2021 10:32AM EST

Earnings Outlook For Provident Financial Hldgs

On Wednesday, January 27, Provident Financial Hldgs (NASDAQ:PROV) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, 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

Analysts covering Provident Financial Hldgs modeled for quarterly EPS of $0.26 on revenue of $9.30 million. In the same quarter last year, Provident Financial Hldgs posted EPS of $0.31 on sales of $10.98 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 16.13% decrease in the company's earnings. Sales would have fallen 15.32% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.24 0.16 0.28 0.39EPS Actual 0.20 0.21 0.15 0.31Revenue Estimate 9.55 M 10.02 M 10.78 M 11.12 MRevenue Actual 9.32 M 9.29 M 9.99 M 10.98 M

Stock Performance

Shares of Provident Financial Hldgs were trading at $17.13 as of January 25. Over the last 52-week period, shares are down 23.15%. 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. Provident Financial Hldgs is scheduled to hold the call at 12:00:00 ET and can be accessed here.