Benzinga | Feb 8, 2021 10:12AM EST

Earnings Outlook For Genpact

Genpact (NYSE:G) announces its next round of earnings this Tuesday, February 09. 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

Wall Street analysts see Genpact reporting earnings of $0.49 per share on revenue of $934.47 million. In the same quarter last year, Genpact reported EPS of $0.57 on revenue of $940.74 million.

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

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 14.04% decrease in the company's earnings. Sales would have fallen 0.67% 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 0.49 0.34 0.45 0.56EPS Actual 0.56 0.52 0.53 0.57Revenue Estimate 903.59 M 838.12 M 894.39 M 911.84 MRevenue Actual 935.52 M 900.09 M 923.19 M 940.74 M

Stock Performance

Shares of Genpact were trading at $41.04 as of February 05. Over the last 52-week period, shares are down 1.95%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Genpact is scheduled to hold the call at 16:30:00 ET and can be accessed here.