Benzinga | Feb 15, 2021 10:41AM EST

Earnings Outlook For Ardagh Group

Ardagh Group (NYSE:ARD) 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.

Net Income, Earnings, 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

Analysts expect Ardagh Group earnings of $0.26 per share. Revenue will likely be around $1.62 billion, according to the consensus estimate. In the same quarter last year, Ardagh Group reported earnings per share of $0.39 on revenue of $1.58 billion.

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.

The analyst consensus estimate would represent a 33.33% decrease in the company's earnings. Revenue would be have grown 2.47% 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 0.40 0.33 0.28 0.26EPS Actual 0.48 0.37 0.31 0.39Revenue Estimate 1.73 B 1.61 B 1.62 B 1.59 BRevenue Actual 1.80 B 1.61 B 1.62 B 1.58 B

Stock Performance

Shares of Ardagh Group were trading at $18.37 as of February 11. Over the last 52-week period, shares are down 11.26%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ardagh Group is scheduled to hold the call at 10:00:00 ET and can be accessed here.