Benzinga | Apr 30, 2021 10:25AM EDT

A Preview Of Transocean's Earnings

Transocean (NYSE:RIG) unveils its next round of earnings this Monday, May 03. Get prepared with Benzinga's ultimate preview for Transocean's Q1 earnings.

Net Income, Earnings, 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

Transocean EPS will likely be near $0.18 while revenue will be around $645.71 million, according to analysts. In the same quarter last year, Transocean reported EPS of $0.3 on revenue of $759.00 million.

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 40.0% increase in the company's earnings. Revenue would be down 14.93% from the year-ago period. 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 -0.19 -0.13 -0.27 -0.29EPS Actual -0.34 -0.11 0 -0.30Revenue Estimate 699.08 M 768.28 M 773.88 M 802.99 MRevenue Actual 690.00 M 773.00 M 930.00 M 759.00 M

Stock Performance

Shares of Transocean were trading at $3.38 as of April 29. Over the last 52-week period, shares are up 172.76%. 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. Transocean is scheduled to hold the call at 09:00:00 ET and can be accessed here.