Benzinga | Apr 23, 2021 10:15AM EDT

Canon's Earnings: A Preview

Canon (NYSE:CAJ) will be releasing its next round of earnings this Monday, April 26. For all of the relevant information, here is your guide for Monday'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 Canon management projections, analysts predict EPS of $0.27 on revenue of $7.79 billion. In the same quarter last year, Canon reported earnings per share of $0.19 on sales of $7.18 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.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 42.11%. Revenue would be up 8.54% on a year-over-year basis. 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 0.46 0.01 -0.03 0.17EPS Actual 0.49 0.15 -0.08 0.19Revenue Estimate 9.20 B 7.09 B 6.78 B 7.53 BRevenue Actual 9.49 B 7.16 B 6.23 B 7.18 B

Stock Performance

Over the last 52-week period, shares are up 15.72%. 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. Canon is scheduled to hold the call at 04:00:00 ET and can be accessed here.