Benzinga | Mar 2, 2021 10:12AM EST

Falcon Minerals's Earnings Outlook

Falcon Minerals (NASDAQ:FLMN) will be releasing its next round of earnings this Wednesday, March 03. For all of the relevant information, here is your guide for Wednesday's Q4 earnings announcement.

What Are Earnings, Net Income, 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

Falcon Minerals EPS is expected to be around $0.03, according to sell-side analysts. Sales will likely be near $10.97 million. In the same quarter last year, Falcon Minerals posted EPS of $0.05 on sales of $13.05 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.

The Wall Street estimate would represent a 40.0% decline in the company's earnings. Revenue would have fallen 15.95% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.03 -0.01 0.06 0.06EPS Actual 0.01 -0.01 0.05 0.05Revenue Estimate 10.02 M 6.71 M 15.31 M 15.36 MRevenue Actual 9.67 M 6.12 M 13.60 M 13.05 M

Stock Performance

Shares of Falcon Minerals were trading at $3.99 as of March 01. Over the last 52-week period, shares are up 12.57%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Falcon Minerals is scheduled to hold the call at 09:00:00 ET and can be accessed here.