Benzinga | Feb 5, 2021 10:06AM EST

Affiliated Managers Group's Earnings: A Preview

Affiliated Managers Group (NYSE:AMG) unveils its next round of earnings this Monday, February 08. Here is Benzinga's everything-that-matters guide for the 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

Affiliated Managers Group EPS will likely be near $3.71 while revenue will be around $513.50 million, according to analysts. In the same quarter last year, Affiliated Managers Group posted EPS of $4.52 on sales of $555.50 million.

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 17.92% decline in the company's earnings. Sales would have fallen 7.56% from the same quarter last year. Here is how the Affiliated Managers Group's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 2.84 2.73 3.08 4.08EPS Actual 3.27 2.74 3.16 4.52Revenue Estimate 467.97 M 445.67 M 496.34 M 553.50 MRevenue Actual 494.80 M 471.10 M 507.30 M 555.50 M

Stock Performance

Over the last 52-week period, shares are up 39.14%. 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. Affiliated Managers Group is scheduled to hold the call at 08:30:00 ET and can be accessed here.