Benzinga | Apr 15, 2021 10:43AM EDT

Earnings Preview for Bank of New York Mellon

Bank of New York Mellon (NYSE:BK) announces its next round of earnings this Friday, April 16. Here is Benzinga's everything-that-matters guide for this Friday's Q1 earnings announcement.

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 Bank of New York Mellon management projections, analysts predict EPS of $0.87 on revenue of $3.85 billion. In the same quarter last year, Bank of New York Mellon announced EPS of $1.05 on revenue of $4.11 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 Wall Street estimate would represent a 17.14% decline in the company's earnings. Revenue would have fallen 6.28% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.91 0.94 0.91 0.88EPS Actual 0.96 0.98 1.01 1.05Revenue Estimate 3.83 B 3.83 B 3.89 B 3.85 BRevenue Actual 3.90 B 3.85 B 4.01 B 4.11 B

Stock Performance

Over the last 52-week period, shares of Bank of New York Mellon are up 29.15%.

Do not be surprised to see the stock move on comments made during its conference call. Bank of New York Mellon is scheduled to hold the call at 08:00:00 ET and can be accessed here.