Benzinga | May 21, 2021 10:17AM EDT

Preview: Target Hospitality's Earnings

Target Hospitality (NASDAQ:TH) announces its next round of earnings this Monday, May 24. Here is Benzinga's look at Target Hospitality'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 are expecting Target Hospitality's loss per share to be near $0.09 on sales of $40.93 million. Target Hospitality reported a profit of $0.05 per share when it published results during the same quarter last year. Sales in that period totaled $71.66 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 match the consensus estimate, earnings would be down 280.0%. Sales would be down 42.88% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2021 Q4 2021 Q3 2020 Q3 2020 Q2 2020 Q2 2020 Q1 2020EPS Estimate -0.04 -0.12 -0.06 -0.12 -0.06 -0.11 -0.05 0.06EPS Actual -0.07 -0.10 -0.07 -0.08 -0.09 -0.15 -0.08 0.05Revenue 19.50 M 37.57 M 18.33 M 42.26 M 16.54 M 39.42 M 17.03 M 72.03 MEstimateRevenue Actual 15.43 M 51.61 M 19.12 M 48.26 M 14.05 M 53.62 M 17.16 M 71.66 M

Stock Performance

For a full 12 months, the return has risen by 38.73%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. Target Hospitality is scheduled to hold the call at 08:30:00 ET and can be accessed here.