Benzinga | Nov 30, 2020 10:07AM EST

A Preview Of Bank of Nova Scotia's Earnings

Bank of Nova Scotia (NYSE:BNS) announces its next round of earnings this Tuesday, December 01. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 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 Bank of Nova Scotia management projections, analysts predict EPS of $1.32 on revenue of $5.46 billion. In the same quarter last year, Bank of Nova Scotia announced EPS of $1.38 on revenue of $6.02 billion.

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 analyst consensus estimate would represent a 4.35% decrease in the company's earnings. Sales would be down 9.36% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019EPS Estimate 1.34 1.32 1.32 1.32EPS Actual 0.75 0.78 1.41 1.38Revenue Estimate 5.73 B 5.46 B 5.46 B 5.46 BRevenue Actual 5.58 B 5.93 B 6.27 B 6.02 B

Stock Performance

Shares of Bank of Nova Scotia were trading at $50.1 as of November 27. Over the last 52-week period, shares are down 10.51%. 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. Bank of Nova Scotia is scheduled to hold the call at 07:15:00 ET and can be accessed here.