Benzinga | Apr 19, 2021 10:09AM EDT

A Preview Of Mercantile Bank's Earnings

Mercantile Bank (NASDAQ:MBWM) unveils its next round of earnings this Tuesday, April 20. Get prepared with Benzinga's ultimate preview for Mercantile Bank's Q1 earnings.

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

Wall Street analysts see Mercantile Bank reporting earnings of $0.71 per share on revenue of $42.10 million. Mercantile Bank earnings in the same period a year ago was $0.65 per share. Quarterly sales came in at $36.87 million.

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.

If the company were to match the consensus estimate, earnings would be up 9.23%. Sales would be up 14.19% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.55 0.42 0.32 0.47EPS Actual 0.87 0.66 0.54 0.65Revenue Estimate 40.34 M 39.41 M 36.61 M 36.27 MRevenue Actual 46.18 M 42.82 M 41.55 M 36.87 M

Stock Performance

Over the last 52-week period, shares of Mercantile Bank are up 51.7%.

Do not be surprised to see the stock move on comments made during its conference call. Mercantile Bank is scheduled to hold the call at 10:00:00 ET and can be accessed here.