Benzinga | Feb 23, 2021 10:21AM EST

Earnings Outlook For Curtiss-Wright

Curtiss-Wright (NYSE:CW) announces its next round of earnings this Wednesday, February 24. Here is Benzinga's look at Curtiss-Wright's Q4 earnings report.

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 expect Curtiss-Wright earnings of $2.33 per share. Revenue will likely be around $669.05 million, according to the consensus estimate. In the same quarter last year, Curtiss-Wright posted EPS of $2.12 on sales of $655.77 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 Wednesday, earnings would be up 9.91%. Sales would be up 2.02% 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 1.54 1.28 1.29 2.08EPS Actual 1.85 1.31 1.34 2.12Revenue Estimate 566.29 M 542.32 M 581.15 M 685.96 MRevenue Actual 571.61 M 550.05 M 601.23 M 655.77 M

Stock Performance

Shares of Curtiss-Wright were trading at $117.95 as of February 22. Over the last 52-week period, shares are down 9.68%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

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