Benzinga | Apr 16, 2021 10:37AM EDT

M&T Bank Earnings Preview

M&T Bank (NYSE:MTB) unveils its next round of earnings this Monday, April 19. Get prepared with Benzinga's ultimate preview for M&T Bank's Q1 earnings.

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

M&T Bank EPS will likely be near $3.0 while revenue will be around $1.49 billion, according to analysts. M&T Bank earnings in the same period a year ago was $1.95 per share. Quarterly sales came in at $1.51 billion.

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.

If the company were to report earnings in line when it publishes results Monday, quarterly profit would be up 53.85%. Revenue would be down 1.06% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 3.03 2.60 1.59 2.47EPS Actual 3.52 2.75 1.76 1.95Revenue Estimate 1.46 B 1.46 B 1.47 B 1.48 BRevenue Actual 1.54 B 1.46 B 1.44 B 1.51 B

Stock Performance

Over the last 52-week period, shares of M&T Bank are up 48.1%.

Do not be surprised to see the stock move on comments made during its conference call. M&T Bank is scheduled to hold the call at 11:00:00 ET and can be accessed here.