Benzinga | Apr 20, 2021 10:31AM EDT

Earnings Preview: Signature Bank

Signature Bank (NASDAQ:SBNY) releases its next round of earnings this Wednesday, April 21. Get the latest predictions in Benzinga's essential guide to the company's Q1 earnings report.

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

Signature Bank EPS is expected to be around $2.85, according to sell-side analysts. Sales will likely be near $430.65 million. In the same quarter last year, Signature Bank posted EPS of $1.88 on sales of $362.44 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 when it reports Wednesday, EPS would be up 51.6%. Revenue would be have grown 18.82% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 2.89 2.76 2.24 2.18EPS Actual 3.26 2.62 2.21 1.88Revenue Estimate 419.43 M 421.41 M 389.14 M 343.48 MRevenue Actual 419.17 M 412.93 M 399.80 M 362.44 M

Stock Performance

Over the last 52-week period, shares are up 160.73%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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