Benzinga | Jan 27, 2021 10:18AM EST

Preview: Byline Bancorp's Earnings

On Thursday, January 28, Byline Bancorp (NYSE:BY) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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, Byline Bancorp analysts model for earnings of $0.29 per share on sales of $69.53 million. Byline Bancorp earnings in the same period a year ago was $0.42 per share. Quarterly sales came in at $68.43 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 30.95%. Sales would be up 1.61% from the year-ago period. Here is how the Byline Bancorp's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.21 0.08 0.27 0.38EPS Actual 0.34 0.24 0.09 0.42Revenue Estimate 65.33 M 59.97 M 65.43 M 68.67 MRevenue Actual 75.78 M 65.40 M 62.00 M 68.43 M

Stock Performance

Shares of Byline Bancorp were trading at $15.69 as of January 26. Over the last 52-week period, shares are down 23.19%. 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. Byline Bancorp is scheduled to hold the call at 10:00:00 ET and can be accessed here.