Benzinga | Jul 14, 2021 10:09AM EDT

Preview: WNS (Holdings)'s Earnings

On Thursday, July 15, WNS (Holdings) (NYSE:WNS) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, 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

Sell-side analysts expect WNS (Holdings)'s EPS to be near $0.68 on sales of $230.07 million. In the same quarter last year, WNS (Holdings) announced EPS of $0.5 on revenue of $201.40 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 report earnings in line when it publishes results Thursday, quarterly profit would be up 36.0%. Sales would be up 14.24% from the same quarter last year. WNS (Holdings)'s reported EPS has stacked up against analyst estimates in the past like this: Quarter Q4 2021 Q3 2021 Q2 2021 Q1 2021EPS Estimate 0.69 0.60 0.53 0.14EPS Actual 0.71 0.79 0.73 0.50Revenue Estimate 227.53 M 213.43 M 204.47 M 179.32 MRevenue Actual 228.30 M 224.50 M 214.40 M 201.40 M

Stock Performance

Shares of WNS (Holdings) were trading at $80.56 as of July 13. Over the last 52-week period, shares are up 32.19%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

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