Benzinga | Jan 27, 2021 10:38AM EST

Carpenter Technology's Earnings: A Preview

Carpenter Technology (NYSE:CRS) announces its next round of earnings this Thursday, January 28. Here is Benzinga's everything-that-matters guide for this Thursday's Q2 earnings announcement.

What Are Earnings, Net Income, 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

Wall Street analysts see Carpenter Technology reporting a loss of $0.64 per share on revenue of $362.79 million. In the same quarter last year, Carpenter Technology reported earnings per share of $0.83 on sales of $573.00 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, earnings would be down 177.11%. Revenue would have fallen 36.69% from the same quarter last year. Carpenter Technology's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate -0.58 -0.35 0.77 0.87EPS Actual -0.58 -0.31 0.82 0.83Revenue Estimate 371.00 M 441.85 M 576.15 M 576.20 MRevenue Actual 353.30 M 437.30 M 585.40 M 573.00 M

Stock Performance

Shares of Carpenter Technology were trading at $34.79 as of January 26. Over the last 52-week period, shares are down 20.54%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Carpenter Technology is scheduled to hold the call at 10:00:00 ET and can be accessed here.