Benzinga | Feb 19, 2021 10:41AM EST

Preview: CVR Energy's Earnings

CVR Energy (NYSE:CVI) unveils its next round of earnings this Monday, February 22. 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

Based on CVR Energy management projections, analysts predict EPS of $0.72 on revenue of $1.19 billion. In the same quarter last year, CVR Energy reported earnings per share of $0.44 on sales of $1.57 billion.

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 post earnings in line with the consensus estimate when it reports Monday, EPS would be down 263.64%. Revenue would have fallen 24.16% from the same quarter last year. CVR Energy's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.52 -0.42 -0.53 0.54EPS Actual -0.57 -0.44 -0.09 0.44Revenue Estimate 1.13 B 890.36 M 1.08 B 1.62 BRevenue Actual 1.00 B 675.00 M 1.13 B 1.57 B

Stock Performance

Shares of CVR Energy were trading at $21.06 as of February 18. Over the last 52-week period, shares are down 33.28%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CVR Energy is scheduled to hold the call at 13:00:00 ET and can be accessed here.