Benzinga | Feb 15, 2021 10:29AM EST

Earnings Preview for NMI Holdings

NMI Holdings (NASDAQ:NMIH) announces its next round of earnings this Tuesday, February 16. Here is Benzinga's everything-that-matters guide for this Tuesday'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

Based on NMI Holdings management projections, analysts predict EPS of $0.5 on revenue of $104.20 million. NMI Holdings reported a per-share profit of $0.75 when it published results during the same quarter last year. Sales in that period totaled $104.90 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.

If the company were to match the consensus estimate, earnings would be down 33.33%. Sales would be down 0.66% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.34 0.34 0.71 0.70EPS Actual 0.47 0.40 0.75 0.75Revenue Estimate 98.28 M 97.92 M 97.43 M 97.12 MRevenue Actual 107.78 M 107.95 M 107.65 M 104.90 M

Stock Performance

Over the past 52-week period, shares of NMI Holdings have declined 24.11%.

Do not be surprised to see the stock move on comments made during its conference call. NMI Holdings is scheduled to hold the call at 17:00:00 ET and can be accessed here.