Benzinga | Feb 22, 2021 10:17AM EST

Earnings Preview: TCG BDC

TCG BDC (NASDAQ:CGBD) releases its next round of earnings this Tuesday, February 23. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

TCG BDC earnings will be near $0.36 per share on sales of $42.70 million, according to analysts. TCG BDC EPS in the same period a year ago totaled $0.43. Sales were $53.47 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.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 16.28%. Sales would have fallen 20.13% from the same quarter last year. 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 0.36 0.35 0.40 0.43EPS Actual 0.38 0.39 0.42 0.43Revenue Estimate 43.08 M 44.32 M 51.51 M 54.79 MRevenue Actual 42.78 M 45.27 M 50.55 M 53.47 M

Stock Performance

Shares of TCG BDC were trading at $12.05 as of February 19. Over the last 52-week period, shares are down 6.24%. 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. TCG BDC is scheduled to hold the call at 11:00:00 ET and can be accessed here.