Benzinga | Feb 18, 2021 10:03AM EST

Earnings Preview: Arbor Realty Trust

Arbor Realty Trust (NYSE:ABR) announces its next round of earnings this Friday, February 19. Here is Benzinga's everything-that-matters guide for this Friday's Q4 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

Wall Street analysts see Arbor Realty Trust reporting earnings of $0.45 per share on revenue of $42.55 million. In the same quarter last year, Arbor Realty Trust reported EPS of $0.34 on revenue of $33.80 million.

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

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate,it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, EPS would be up 32.35%. Sales would be up 25.9% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.33 0.27 0.25 0.36EPS Actual 0.50 0.46 0.31 0.34Revenue Estimate 42.27 M 34.50 M 33.50 M 34.70 MRevenue Actual 43.81 M 41.78 M 38.54 M 33.80 M

Stock Performance

Shares of Arbor Realty Trust were trading at $15.48 as of February 17. Over the last 52-week period, shares are up 5.34%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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