Benzinga | Feb 9, 2021 10:03AM EST

A Preview Of Altice USA's Earnings

On Wednesday, February 10, Altice USA (NYSE:ATUS) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Analysts covering Altice USA modeled for quarterly EPS of $0.37 on revenue of $2.51 billion. In the same quarter last year, Altice USA reported earnings per share of $0.14 on revenue of $2.47 billion.

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.

If the company were to match the consensus estimate, earnings would be up 164.29%. Sales would be up 1.46% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.24 0.15 0.11 0.17EPS Actual 0.32 0.19 0 0.14Revenue Estimate 2.48 B 2.44 B 2.46 B 2.51 BRevenue Actual 2.43 B 2.48 B 2.45 B 2.47 B

Stock Performance

Over the last 52-week period, shares of Altice USA are up 25.4%.

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