Benzinga | May 26, 2021 10:26AM EDT

American Woodmark's Earnings: A Preview

American Woodmark (NASDAQ:AMWD) unveils its next round of earnings this Thursday, May 27. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Analysts expect American Woodmark earnings of $1.71 per share. Revenue will likely be around $463.80 million, according to the consensus estimate. American Woodmark reported a profit of $1.33 per share when it published results during the same quarter last year. Sales in that period totaled $399.20 million.

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.

The Wall Street estimate would represent a 28.57% increase in the company's earnings. Revenue would be have grown 16.18% from the same quarter last year. American Woodmark's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q3 2021 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.63 1.88 1.33 1.51EPS Actual 1.50 1.97 1.66 1.33Revenue Estimate 426.97 M 451.68 M 383.60 M 373.22 MRevenue Actual 431.95 M 448.58 M 390.09 M 399.20 M

Stock Performance

Shares of American Woodmark were trading at $93.67 as of May 25. Over the last 52-week period, shares are up 50.14%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. American Woodmark is scheduled to hold the call at 11:00:00 ET and can be accessed here.