Benzinga | Jan 28, 2021 10:15AM EST

Preview: WisdomTree Investments's Earnings

WisdomTree Investments (NASDAQ:WETF) announces its next round of earnings this Friday, January 29. Here is Benzinga's everything-that-matters guide for this Friday's Q4 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

Based on WisdomTree Investments management projections, analysts predict EPS of $0.05 on revenue of $65.70 million. In the same quarter last year, WisdomTree Investments reported EPS of $0.06 on revenue of $68.91 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.

The analyst consensus estimate would represent a 16.67% decrease in the company's earnings. Revenue would have fallen 4.65% from the same quarter last year. WisdomTree Investments's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.05 0.04 0.05 0.05EPS Actual 0.07 0.05 0.07 0.06Revenue Estimate 63.36 M 58.96 M 64.77 M 67.83 MRevenue Actual 64.64 M 58.13 M 63.87 M 68.91 M

Stock Performance

Over the last 52-week period, shares are up 26.01%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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