Benzinga | Jan 29, 2021 10:12AM EST

Earnings Preview for Alliance Resource

Alliance Resource (NASDAQ:ARLP) unveils its next round of earnings this Monday, February 01. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, 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

Alliance Resource earnings will be near $0.08 per share on sales of $363.60 million, according to analysts. In the same quarter last year, Alliance Resource posted EPS of $0.2 on sales of $453.34 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.

The analyst consensus estimate would represent a 60.0% decline in the company's EPS figure. Revenue would be down 19.79% from the year-ago period. 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 -0.05 -0.43 0.13 0.2EPS Actual 0.21 -0.37 0.10 0.2Revenue Estimate 357.65 M 219.05 M 403.93 M 486.50 MRevenue Actual 355.65 M 255.20 M 350.76 M 453.34 M

Stock Performance

Shares of Alliance Resource were trading at $5.1 as of January 28. Over the last 52-week period, shares are down 40.88%. 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. Alliance Resource is scheduled to hold the call at 10:00:00 ET and can be accessed here.