Benzinga | Mar 1, 2021 10:09AM EST

Park-Ohio Hldgs Earnings Preview

Park-Ohio Hldgs (NASDAQ:PKOH) unveils its next round of earnings this Tuesday, March 02. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Based on Park-Ohio Hldgs management projections, analysts predict EPS of $0.43 on revenue of $350.60 million. In the same quarter last year, Park-Ohio Hldgs posted EPS of $0.65 on sales of $379.50 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.

The Wall Street consensus estimate for earnings would represent a 33.85% decrease for the company. Revenue would be down 7.62% 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 0.03 -0.96 0.57 1EPS Actual 0.52 -1.17 0.13 0.65Revenue Estimate 328.13 M 257.65 M 381.00 M 399.92 MRevenue Actual 340.20 M 228.30 M 366.30 M 379.50 M

Stock Performance

For a full 12 months, the return has risen by 47.21%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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