Benzinga | Nov 18, 2020 10:06AM EST

Earnings Preview: Brady

On Thursday, November 19, Brady (NYSE: BRC) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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 covering Brady modeled for quarterly EPS of $0.57 on revenue of $270.52 million. Brady earnings in the same period a year ago was $0.7 per share. Quarterly sales came in at $286.95 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 18.57% decrease in the company's earnings. Revenue would be down 5.72% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019EPS Estimate 0.52 0.52 0.58 0.63EPS Actual 0.53 0.47 0.62 0.70Revenue Estimate 249.47 M 261.17 M 283.65 M 293.67 MRevenue Actual 251.74 M 265.94 M 276.67 M 286.95 M

Stock Performance

Over the past 52-week period, shares of Brady have declined 15.16%. 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. Brady is scheduled to hold the call at 10:30:00 ET and can be accessed here.