Benzinga | Jan 28, 2021 10:13AM EST

Earnings Outlook For Capital Product Partners

Capital Product Partners (NASDAQ:CPLP) releases its next round of earnings this Friday, January 29. Get the latest predictions in Benzinga's essential guide to the company'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

Analysts predict Capital Product Partners will report earnings of $0.48 per share on revenue of $35.51 million. Capital Product Partners reported a per-share profit of $0.31 when it published results during the same quarter last year. Sales in that period totaled $27.70 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.

If the company were to match the consensus estimate, earnings would be up 54.84%. Sales would be up 28.19% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.36 0.50 0.43 0.23EPS Actual 0.41 0.46 0.35 0.31Revenue Estimate 33.93 M 35.69 M 33.94 M 25.95 MRevenue Actual 35.50 M 36.57 M 33.69 M 27.70 M

Stock Performance

Shares of Capital Product Partners were trading at $8.7 as of January 27. Over the last 52-week period, shares are down 30.34%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Capital Product Partners is scheduled to hold the call at 09:00:00 ET and can be accessed here.