Benzinga | May 4, 2021 10:26AM EDT

Playa Hotels & Resorts's Earnings: A Preview

Playa Hotels & Resorts (NASDAQ:PLYA) releases its next round of earnings this Wednesday, May 05. Here is Benzinga's essential guide to Playa Hotels & Resorts'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

Wall Street analysts see Playa Hotels & Resorts reporting a loss of $0.34 per share on revenue of $67.70 million. In the same quarter last year, Playa Hotels & Resorts posted EPS of $0.02 on sales of $177.23 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 1800.0% decline in the company's EPS figure. Sales would have fallen 61.8% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.45 -0.45 -0.47 0.14EPS Actual -0.44 -0.57 -0.46 0.02Revenue Estimate 59.03 M 26.12 M 1.23 M 196.41 MRevenue Actual 66.24 M 28.74 M 982.00 K 177.23 M

Stock Performance

Over the last 52-week period, shares are up 296.74%. 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. Playa Hotels & Resorts is scheduled to hold the call at 11:30:00 ET and can be accessed here.