Benzinga | Feb 10, 2021 10:36AM EST

Earnings Preview: Chemours

Chemours (NYSE:CC) will be releasing its next round of earnings this Thursday, February 11. For all of the relevant information, here is your guide for Thursday's Q4 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

Analysts covering Chemours modeled for quarterly EPS of $0.41 on revenue of $1.28 billion. In the same quarter last year, Chemours reported earnings per share of $0.56 on sales of $1.35 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.

The analyst consensus estimate would represent a 26.79% decline in the company's EPS figure. Sales would be down 5.4% from the same quarter last year. Chemours's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.33 0.10 0.47 0.42EPS Actual 0.47 0.18 0.71 0.56Revenue Estimate 1.20 B 1.09 B 1.33 B 1.35 BRevenue Actual 1.23 B 1.09 B 1.30 B 1.35 B

Stock Performance

Shares of Chemours were trading at $27.29 as of February 09. Over the last 52-week period, shares are up 75.57%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Chemours is scheduled to hold the call at 08:30:00 ET and can be accessed here.