Benzinga | Apr 27, 2021 10:25AM EDT

Kaiser Aluminum's Earnings Outlook

Kaiser Aluminum (NASDAQ:KALU) announces its next round of earnings this Wednesday, April 28. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.

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 expects EPS of $0.57 and sales around $355.53 million. In the same quarter last year, Kaiser Aluminum announced EPS of $1.9 on revenue of $369.30 million.

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 match the consensus estimate, earnings would be down 70.0%. Revenue would be down 3.73% from the year-ago period. 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 0.28 0.24 -0.04 1.58EPS Actual 0.35 0.33 0.36 1.90Revenue Estimate 261.03 M 257.48 M 263.90 M 386.89 MRevenue Actual 272.00 M 255.70 M 275.70 M 369.30 M

Stock Performance

Over the last 52-week period, shares are up 48.87%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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