Benzinga | Feb 16, 2021 10:05AM EST

Preview: Cooper-Standard Holdings's Earnings

Cooper-Standard Holdings (NYSE:CPS) unveils its next round of earnings this Wednesday, February 17. Here is Benzinga's everything-that-matters guide for the 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 predict Cooper-Standard Holdings will report earnings of $0.17 per share on revenue of $671.00 million. Cooper-Standard Holdings reported a per-share loss of $1.32 when it published results during the same quarter last year. Sales in that period totaled $726.19 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.

The Wall Street consensus estimate for earnings would represent a 112.88% increase for the company. Revenue would be down 7.6% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -1.64 -7.78 -0.81 -0.60EPS Actual 0.21 -6.61 -2.16 -1.32Revenue Estimate 565.00 M 311.00 M 730.00 M 690.23 MRevenue Actual 683.20 M 340.47 M 654.89 M 726.19 M

Stock Performance

Shares of Cooper-Standard Holdings were trading at $37.12 as of February 15. Over the last 52-week period, shares are up 79.68%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

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