Benzinga | Jun 2, 2021 10:06AM EDT

Preview: Cooper Companies's Earnings

Cooper Companies (NYSE:COO) announces its next round of earnings this Thursday, June 03. Here is Benzinga's everything-that-matters guide for this Thursday's Q2 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

Sell-side analysts expect Cooper Companies's EPS to be near $3.09 on sales of $690.39 million. Cooper Companies EPS in the same period a year ago totaled $1.51. Revenue was $524.90 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.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 104.64%. Revenue would be have grown 31.53% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 2.78 3.09 1.52 2.90EPS Actual 3.17 3.16 2.28 1.51Revenue Estimate 660.67 M 676.20 M 535.66 M 659.59 MRevenue Actual 680.50 M 681.60 M 578.20 M 524.90 M

Stock Performance

Shares of Cooper Companies were trading at $390.39 as of June 01. Over the last 52-week period, shares are up 23.97%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cooper Companies is scheduled to hold the call at 17:00:00 ET and can be accessed here.