Benzinga | Feb 16, 2021 10:23AM EST

Earnings Outlook For Grand Canyon Education

Grand Canyon Education (NASDAQ:LOPE) announces its next round of earnings this Wednesday, February 17. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

What Are Earnings, Net Income, 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

Based on Grand Canyon Education management projections, analysts predict EPS of $1.79 on revenue of $236.27 million. Grand Canyon Education earnings in the same period a year ago was $1.63 per share. Quarterly sales came in at $213.25 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 9.82%. Revenue would be up 10.8% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.11 0.89 1.50 1.54EPS Actual 1.14 1.03 1.53 1.63Revenue Estimate 197.67 M 179.86 M 221.07 M 213.97 MRevenue Actual 198.38 M 185.77 M 221.66 M 213.25 M

Stock Performance

Shares of Grand Canyon Education were trading at $106.58 as of February 15. Over the last 52-week period, shares are up 22.63%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Grand Canyon Education is scheduled to hold the call at 16:30:00 ET and can be accessed here.