Benzinga | Jul 6, 2021 10:11AM EDT

Earnings Outlook For Saratoga Investment

Saratoga Investment (NYSE:SAR) unveils its next round of earnings this Wednesday, July 07. Get prepared with Benzinga's ultimate preview for Saratoga Investment's Q1 earnings.

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

Based on Saratoga Investment management projections, analysts predict EPS of $0.5 on revenue of $14.77 million. Saratoga Investment EPS in the same period a year ago totaled $0.51. Revenue was $13.30 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 match the consensus estimate when it reports Wednesday, earnings would be down 1.96%. Sales would be up 11.08% 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 Q4 2021 Q3 2021 Q2 2021 Q1 2021EPS Estimate 0.50 0.47 0.26 -1.38EPS Actual 0.52 0.50 0.49 0.51Revenue Estimate 14.32 M 13.47 M 12.90 M 13.37 MRevenue Actual 16.21 M 14.28 M 13.86 M 13.30 M

Stock Performance

Shares of Saratoga Investment were trading at $27.1 as of July 05. Over the last 52-week period, shares are up 72.85%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

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