Benzinga | Apr 23, 2021 10:05AM EDT

HomeStreet Earnings Preview

On Monday, April 26, HomeStreet (NASDAQ:HMST) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Analysts expect HomeStreet earnings of $1.12 per share. Revenue will likely be around $89.19 million, according to the consensus estimate. In the same quarter last year, HomeStreet reported EPS of $0.34 on revenue of $78.06 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 report earnings in line when it publishes results Monday, quarterly profit would be up 229.41%. Sales would be have grown 14.25% 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 1.07 0.83 0.31 0.31EPS Actual 1.25 1.15 0.81 0.30Revenue Estimate 89.30 M 86.80 M 76.18 M 66.38 MRevenue Actual 100.03 M 91.84 M 88.10 M 78.06 M

Stock Performance

Shares of HomeStreet were trading at $41.84 as of April 22. Over the last 52-week period, shares are up 80.41%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. HomeStreet is scheduled to hold the call at 13:00:00 ET and can be accessed here.