Benzinga | Feb 1, 2021 10:11AM EST

Earnings Preview: BP

BP (NYSE:BP) announces its next round of earnings this Tuesday, February 02. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 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

BP EPS is expected to be around $0.08, according to sell-side analysts. Sales will likely be near $46.61 billion. In the same quarter last year, BP reported EPS of $0.76 on revenue of $71.11 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 Wall Street estimate would represent a 89.47% decline in the company's earnings. Sales would be down 34.45% 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 -0.03 -1.10 0.26 0.65EPS Actual 0.03 -1.98 0.24 0.76Revenue Estimate 49.19 B 42.78 B 79.61 B 68.79 BRevenue Actual 44.25 B 31.68 B 59.65 B 71.11 B

Stock Performance

Over the past 52-week period, shares of BP have declined 39.78%. 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. BP is scheduled to hold the call at 04:00:00 ET and can be accessed here.