Benzinga | Mar 1, 2021 10:09AM EST

Preview: Dine Brands Global's Earnings

On Tuesday, March 02, Dine Brands Global (NYSE:DIN) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, 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

Sell-side analysts expect Dine Brands Global's EPS to be near $0.68 on sales of $193.06 million. In the same quarter last year, Dine Brands Global posted EPS of $1.78 on sales of $227.51 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 match the consensus estimate, earnings would be down 61.8%. Sales would be down 15.14% from the same quarter last year. 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 0.36 -0.98 1.41 1.71EPS Actual 0.80 -0.87 1.45 1.78Revenue Estimate 165.96 M 96.11 M 219.31 M 234.27 MRevenue Actual 176.64 M 109.71 M 206.88 M 227.51 M

Stock Performance

Over the past 52-week period, shares of Dine Brands Global have declined 4.68%.

Do not be surprised to see the stock move on comments made during its conference call. Dine Brands Global is scheduled to hold the call at 12:00:00 ET and can be accessed here.