Benzinga | Mar 2, 2021 10:15AM EST

CECO Environmental's Earnings: A Preview

CECO Environmental (NASDAQ:CECE) releases its next round of earnings this Wednesday, March 03. Here is Benzinga's essential guide to CECO Environmental's Q4 earnings report.

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

Sell-side analysts expect CECO Environmental's EPS to be near $0.1 on sales of $78.43 million. CECO Environmental reported a per-share profit of $0.27 when it published results during the same quarter last year. Sales in that period totaled $89.41 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 estimate would represent a 62.96% decline in the company's earnings. Sales would be down 12.28% 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 0.11 0.08 0.10 0.14EPS Actual 0.11 0.14 0.15 0.27Revenue Estimate 82.83 M 68.40 M 82.52 M 89.72 MRevenue Actual 77.42 M 75.17 M 80.49 M 89.41 M

Stock Performance

Over the last 52-week period, shares are up 16.25%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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