Benzinga | Apr 30, 2021 10:44AM EDT

A Preview Of Williams Companies's Earnings

Williams Companies (NYSE:WMB) announces its next round of earnings this Monday, May 03. Here is Benzinga's look at Williams Companies's Q1 earnings report.

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

Williams Companies EPS will likely be near $0.29 while revenue will be around $1.97 billion, according to analysts. In the same quarter last year, Williams Companies reported EPS of $0.26 on revenue of $1.91 billion.

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 post earnings in line with the consensus estimate when it reports Monday, EPS would be up 11.54%. Sales would be up 2.98% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.31 0.27 0.24 0.26EPS Actual 0.31 0.27 0.25 0.26Revenue Estimate 1.87 B 1.75 B 1.79 B 2.13 BRevenue Actual 2.09 B 1.93 B 1.78 B 1.91 B

Stock Performance

Shares of Williams Companies were trading at $24.6 as of April 29. Over the last 52-week period, shares are up 29.27%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Williams Companies is scheduled to hold the call at 09:30:00 ET and can be accessed here.