Benzinga | Feb 17, 2021 10:18AM EST

Marcus & Millichap Earnings Preview

Marcus & Millichap (NYSE:MMI) unveils its next round of earnings this Thursday, February 18. Here is Benzinga's everything-that-matters guide for the 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

Analysts predict Marcus & Millichap will report earnings of $0.15 per share on revenue of $162.82 million. Marcus & Millichap reported a profit of $0.52 per share when it published results during the same quarter last year. Sales in that period totaled $237.91 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 71.15% decrease for the company. Sales would be down 31.56% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.06 -0.15 0.31 0.49EPS Actual 0.15 0 0.33 0.52Revenue Estimate 133.50 M 103.80 M 167.80 M 217.43 MRevenue Actual 158.57 M 117.40 M 190.72 M 237.91 M

Stock Performance

Shares of Marcus & Millichap were trading at $38.48 as of February 16. Over the last 52-week period, shares are up 6.46%. 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. Marcus & Millichap is scheduled to hold the call at 17:00:00 ET and can be accessed here.