Benzinga | Jan 27, 2021 10:19AM EST

Valley National Earnings Preview

Valley National (NASDAQ:VLY) will be releasing its next round of earnings this Thursday, January 28. For all of the relevant information, here is your guide for Thursday's Q4 earnings announcement.

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

Analysts covering Valley National modeled for quarterly EPS of $0.26 on revenue of $329.97 million. Valley National EPS in the same period a year ago totaled $0.24. Revenue was $276.63 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.

The analyst consensus estimate would represent a 8.33% increase in the company's EPS figure. Sales would be up 19.28% from the year-ago period. Valley National's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.25 0.21 0.20 0.23EPS Actual 0.25 0.23 0.21 0.24Revenue Estimate 329.16 M 306.35 M 285.83 M 264.34 MRevenue Actual 332.36 M 327.39 M 306.74 M 276.63 M

Stock Performance

Over the last 52-week period, shares are down 1.63%. 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. Valley National is scheduled to hold the call at 11:00:00 ET and can be accessed here.