Benzinga | Feb 4, 2021 11:28AM EST

Earnings Preview for Brookfield Business

On Friday, February 05, Brookfield Business (NYSE:BBU) will release its latest earnings report. Benzinga's outlook for Brookfield Business is included in the following 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

Brookfield Business EPS will likely be near $1.27 while revenue will be around $11.19 billion, according to analysts. In the same quarter last year, Brookfield Business announced EPS of $0.58 on revenue of $11.32 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 analyst consensus estimate would represent a 118.97% increase in the company's EPS figure. Sales would be down 1.15% on a year-over-year basis. Here is how the Brookfield Business's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.92 0.85 0.59 0.69EPS Actual 1.39 1.15 1.29 0.58Revenue Estimate 11.19 B 10.18 B 12.19 B 12.58 BRevenue Actual 10.07 B 7.37 B 10.15 B 11.32 B

Stock Performance

Shares of Brookfield Business were trading at $36.94 as of February 03. Over the last 52-week period, shares are down 14.65%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Brookfield Business is scheduled to hold the call at 11:00:00 ET and can be accessed here.