Benzinga | May 3, 2021 10:14AM EDT

Earnings Preview for Plains GP Holdings

On Tuesday, May 04, Plains GP Holdings (NYSE:PAGP) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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

Based on Plains GP Holdings management projections, analysts predict EPS of $0.21 on revenue of $6.90 billion. In the same quarter last year, Plains GP Holdings posted EPS of $0.53 on sales of $8.27 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 60.38%. Revenue would be down 16.56% from the same quarter last year. Here is how the Plains GP Holdings's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.31 0.25 0.26 0.36EPS Actual 0.29 0.46 0.09 0.53Revenue Estimate 6.06 B 6.33 B 7.90 B 8.48 BRevenue Actual 5.96 B 5.83 B 3.23 B 8.27 B

Stock Performance

Over the last 52-week period, shares are up 9.77%. 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. Plains GP Holdings is scheduled to hold the call at 17:30:00 ET and can be accessed here.