Benzinga | Jan 28, 2021 10:04AM EST

Bank7 Earnings Preview

Bank7 (NASDAQ:BSVN) releases its next round of earnings this Friday, January 29. Here is Benzinga's essential guide to Bank7's Q4 earnings report.

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

Based on management's projections, Bank7 analysts model for earnings of $0.48 per share on sales of $11.99 million. Bank7 reported a profit of $0.46 per share when it published results during the same quarter last year. Sales in that period totaled $10.91 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Wall Street estimate would represent a 4.35% increase in the company's earnings. Revenue would be up 9.85% from the same quarter last year. 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 0.44 0.35 0.37 0.48EPS Actual 0.48 0.54 0.51 0.46Revenue Estimate 11.99 M 11.65 M 10.50 M 11.10 MRevenue Actual 11.94 M 12.23 M 11.76 M 10.91 M

Stock Performance

Over the past 52-week period, shares of Bank7 have declined 18.91%.

Do not be surprised to see the stock move on comments made during its conference call. Bank7 is scheduled to hold the call at 11:00:00 ET and can be accessed here.