Benzinga | Apr 29, 2021 10:16AM EDT

Restaurant Brands Intl Earnings Preview

Restaurant Brands Intl (NYSE:QSR) releases its next round of earnings this Friday, April 30. 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

Sell-side analysts expect Restaurant Brands Intl's EPS to be near $0.56 on sales of $1.15 billion. Restaurant Brands Intl EPS in the same period a year ago totaled $0.48. Revenue was $1.23 billion.

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.

The analyst consensus estimate would represent a 16.67% increase in the company's EPS figure. Revenue would have fallen 6.12% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.56 0.56 0.56 0.56EPS Actual 0.53 0.68 0.33 0.48Revenue Estimate 1.15 B 1.15 B 1.15 B 1.15 BRevenue Actual 1.36 B 1.34 B 1.05 B 1.23 B

Stock Performance

Shares of Restaurant Brands Intl were trading at $67.3 as of April 28. Over the last 52-week period, shares are up 41.32%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Restaurant Brands Intl is scheduled to hold the call at 08:30:00 ET and can be accessed here.