Benzinga | Mar 8, 2021 10:10AM EST

Earnings Outlook for Vertex Energy

On Tuesday, March 09, Vertex Energy (NASDAQ:VTNR) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, 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

Based on Vertex Energy management projections, analysts predict EPS of $0.08 on revenue of $41.25 million. In the same quarter last year, Vertex Energy reported earnings per share of $0.04 on sales of $42.59 million.

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 analyst consensus estimate would represent a 300.0% decline in the company's EPS figure. Sales would be down 3.14% on a year-over-year basis. Vertex Energy's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.15 -0.15 -0.03 -0.04EPS Actual -0.10 -0.25 -0.21 0.04Revenue Estimate 37.68 M 19.84 M 44.73 M 41.97 MRevenue Actual 37.38 M 21.37 M 36.20 M 42.59 M

Stock Performance

Over the last 52-week period, shares of Vertex Energy are up 50.95%.

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