Benzinga | Feb 22, 2021 10:13AM EST

Preview: Conifer Holdings's Earnings

On Tuesday, February 23, Conifer Holdings (NASDAQ:CNFR) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Analysts are predicting Conifer Holdings will report a loss of $0.03 per share on revenue of $22.66 million. In the same quarter last year, Conifer Holdings reported EPS of $0.35 on revenue of $23.28 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.

The analyst consensus estimate would represent a 91.43% increase in the company's EPS figure. Sales would be down 2.65% 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 -0.03 -0.06 -0.10 -0.17EPS Actual -0.24 -0.04 -0.28 -0.35Revenue Estimate 24.12 M 21.52 M 21.55 M 24.94 MRevenue Actual 22.23 M 21.76 M 22.02 M 23.28 M

Stock Performance

Shares of Conifer Holdings were trading at $3.8 as of February 19. Over the last 52-week period, shares are up 11.88%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Conifer Holdings is scheduled to hold the call at 08:30:00 ET and can be accessed here.