Benzinga | Feb 15, 2021 10:27AM EST

A Preview Of Vulcan Materials's Earnings

On Tuesday, February 16, Vulcan Materials (NYSE:VMC) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Wall Street analysts see Vulcan Materials reporting earnings of $0.98 per share on sales of $1.16 billion. In the same quarter last year, Vulcan Materials reported EPS of $1.08 on revenue of $1.19 billion.

Why Analyst Estimates And Earnings Surprises Are Important

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 when it reports Tuesday, EPS would have fallen 9.26%. Sales would be down 2.19% on a year-over-year basis. 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 1.62 1.38 0.44 1.17EPS Actual 1.56 1.60 0.47 1.08Revenue Estimate 1.37 B 1.29 B 1.01 B 1.19 BRevenue Actual 1.31 B 1.32 B 1.05 B 1.19 B

Stock Performance

Shares of Vulcan Materials were trading at $159.92 as of February 11. Over the last 52-week period, shares are up 19.92%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Vulcan Materials is scheduled to hold the call at 11:00:00 ET and can be accessed here.