Benzinga | Nov 9, 2020 10:16AM EST

Earnings Preview for Ashland Global Holdings

On Tuesday, November 10, Ashland Global Holdings (NYSE: ASH) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Based on management's projections, Ashland Global Holdings analysts model for earnings of $0.75 per share on sales of $593.15 million. In the same quarter last year, Ashland Global Holdings reported EPS of $0.77 on revenue of $609.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 2.6%. Sales would be down 2.6% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019EPS Estimate 0.68 0.81 0.07 0.95EPS Actual 0.84 0.84 0.13 0.77Revenue Estimate 561.94 M 618.76 M 535.58 M 633.63 MRevenue Actual 574.00 M 610.00 M 533.00 M 609.00 M

Stock Performance

Shares of Ashland Global Holdings were trading at $75.48 as of November 06. Over the last 52-week period, shares are up 3.85%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ashland Global Holdings is scheduled to hold the call at 09:00:00 ET and can be accessed here.