Benzinga | Jul 14, 2021 10:07AM EDT

Earnings Outlook For Bank of New York Mellon

Bank of New York Mellon (NYSE:BK) releases its next round of earnings this Thursday, July 15. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Bank of New York Mellon analysts model for earnings of $1.0 per share on sales of $3.88 billion. Bank of New York Mellon EPS in the same period a year ago totaled $1.01. Sales were $4.01 billion.

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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 0.99%. Revenue would be down 3.24% on a year-over-year basis. 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 0.87 0.91 0.94 0.91EPS Actual 0.97 0.96 0.98 1.01Revenue Estimate 3.85 B 3.83 B 3.83 B 3.89 BRevenue Actual 3.92 B 3.90 B 3.85 B 4.01 B

Stock Performance

Shares of Bank of New York Mellon were trading at $49.96 as of July 13. Over the last 52-week period, shares are up 36.12%. 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. Bank of New York Mellon is scheduled to hold the call at 08:00:00 ET and can be accessed here.