Benzinga | Mar 1, 2021 10:15AM EST

A Preview Of AerCap Holdings's Earnings

On Tuesday, March 02, AerCap Holdings (NYSE:AER) 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

Analysts expect AerCap Holdings earnings of $0.94 per share. Revenue will likely be around $1.02 billion, according to the consensus estimate. In the same quarter last year, AerCap Holdings reported earnings per share of $2.34 on sales of $1.20 billion.

Why Analyst Estimates And Earnings Surprises Are Important

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 Wall Street estimate would represent a 59.83% decline in the company's earnings. Revenue would be down 14.64% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.43 1.39 1.73 1.96EPS Actual 1.24 1.92 2.14 2.34Revenue Estimate 1.10 B 1.12 B 1.18 B 1.21 BRevenue Actual 988.10 M 1.17 B 1.17 B 1.20 B

Stock Performance

Shares of AerCap Holdings were trading at $48.185 as of February 26. Over the last 52-week period, shares are down 2.85%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

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