Benzinga | Feb 16, 2021 10:08AM EST

Earnings Outlook For Pan American Silver

Pan American Silver (NASDAQ:PAAS) unveils its next round of earnings this Wednesday, February 17. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, 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

Pan American Silver earnings will be near $0.44 per share on sales of $439.69 million, according to analysts. In the same quarter last year, Pan American Silver announced EPS of $0.33 on revenue of $404.40 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 Wednesday, earnings would be up 33.33%. Sales would be up 8.73% from the year-ago period. 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 0.38 0.05 0.13 0.22EPS Actual 0.34 0.28 -0.04 0.33Revenue Estimate 392.94 M 219.34 M 373.18 M 409.57 MRevenue Actual 300.41 M 249.51 M 358.43 M 404.40 M

Stock Performance

Shares of Pan American Silver were trading at $33.33 as of February 15. Over the last 52-week period, shares are up 33.09%. 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. Pan American Silver is scheduled to hold the call at 11:00:00 ET and can be accessed here.