Benzinga | Feb 22, 2021 10:12AM EST

Avangrid's Earnings: A Preview

On Tuesday, February 23, Avangrid (NYSE:AGR) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, 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

Wall Street analysts see Avangrid reporting earnings of $0.57 per share on sales of $1.70 billion. Avangrid EPS in the same period a year ago totaled $0.74. Sales were $1.61 billion.

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.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 22.97%. Revenue would be up 5.66% on a year-over-year basis. 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 0.41 0.34 0.75 0.76EPS Actual 0.32 0.32 0.76 0.74Revenue Estimate 1.52 B 1.45 B 1.92 B 1.76 BRevenue Actual 1.47 B 1.39 B 1.79 B 1.61 B

Stock Performance

Shares of Avangrid were trading at $44.92 as of February 19. Over the last 52-week period, shares are down 20.25%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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