Benzinga | Jun 22, 2021 10:11AM EDT

Earnings Outlook for IHS Markit

On Wednesday, June 23, IHS Markit (NYSE:INFO) 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

IHS Markit earnings will be near $0.8 per share on sales of $1.13 billion, according to analysts. In the same quarter last year, IHS Markit reported EPS of $0.69 on revenue of $1.03 billion.

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.

The Wall Street estimate would represent a 15.94% increase in the company's earnings. Revenue would be have grown 10.03% from the same quarter last year. Here is how the IHS Markit's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2021 Q3 2020 Q2 2020EPS Estimate 0.70 0.67 0.69 0.67EPS Actual 0.71 0.72 0.77 0.69Revenue Estimate 1.11 B 1.11 B 1.07 B 1.06 BRevenue Actual 1.12 B 1.11 B 1.07 B 1.03 B

Stock Performance

Over the last 52-week period, shares of IHS Markit are up 54.03%.

Do not be surprised to see the stock move on comments made during its conference call. IHS Markit is scheduled to hold the call at 08:00:00 ET and can be accessed here.