Benzinga | Oct 28, 2020 10:14AM EDT

Earnings Outlook for Buenaventura Mining Co

On Thursday, October 29, Buenaventura Mining Co (NYSE: BVN) will report its last quarter's earnings. Here is Benzinga's preview of the company's 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

Buenaventura Mining Co EPS will likely be near $0.07 while revenue will be around $265.06 million, according to analysts. Buenaventura Mining Co reported a per-share profit of $0.02 when it published results during the same quarter last year. Sales in that period totaled $230.20 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.

If the company were to match the consensus estimate when it reports Thursday, EPS would be up 250.0%. Revenue would be up 15.14% 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 Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.18 -0.05 0.130 0.12EPS Actual -0.10 -0.30 -0.211 0.02Revenue Estimate 71.67 M 243.40 M 234.30 M 224.91 MRevenue Actual 97.80 M 114.50 M 235.50 M 230.20 M

Stock Performance

Shares of Buenaventura Mining Co were trading at $13.3 as of October 27. Over the last 52-week period, shares are down 18.22%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Buenaventura Mining Co is scheduled to hold the call at 10:00:00 ET and can be accessed here.