Benzinga | Jan 28, 2021 10:17AM EST

Earnings Outlook For First BanCorp

First BanCorp (NYSE:FBP) 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 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

Wall Street expects EPS of $0.21 and sales around $180.12 million. First BanCorp reported a profit of $0.19 per share when it published results during the same quarter last year. Sales in that period totaled $139.93 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 analyst consensus estimate would represent a 10.53% increase in the company's EPS figure. Sales would be have grown 28.72% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.12 0.06 0.16 0.19EPS Actual 0.10 0.10 -0.03 0.19Revenue Estimate 152.74 M 139.41 M 140.66 M 144.73 MRevenue Actual 148.70 M 135.21 M 138.65 M 139.93 M

Stock Performance

Shares of First BanCorp were trading at $9.1 as of January 27. Over the last 52-week period, shares are down 0.32%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

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