Benzinga | Apr 27, 2021 10:27AM EDT

Earnings Preview: Century Communities

Century Communities (NYSE:CCS) 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 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

Century Communities EPS will likely be near $1.59 while revenue will be around $802.45 million, according to analysts. In the same quarter last year, Century Communities reported earnings per share of $0.8 on revenue of $602.61 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 report earnings in line when it publishes results Wednesday, earnings would be up 98.75%. Revenue would be up 33.16% 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 1.82 0.93 0.69 0.64EPS Actual 2.75 1.48 1.21 0.80Revenue Estimate 950.41 M 709.49 M 572.69 M 544.90 MRevenue Actual 987.78 M 794.36 M 776.44 M 602.61 M

Stock Performance

Over the last 52-week period, shares are up 219.17%. 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. Century Communities is scheduled to hold the call at 17:00:00 ET and can be accessed here.