Benzinga | Jul 19, 2021 10:35AM EDT

Earnings Outlook For Rexnord

Rexnord (NYSE:RXN) announces its next round of earnings this Tuesday, July 20. Here is Benzinga's look at Rexnord'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

Wall Street analysts see Rexnord reporting earnings of $0.5 per share on sales of $544.50 million. Rexnord reported a profit of $0.47 per share when it published results during the same quarter last year. Sales in that period totaled $493.60 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.

The analyst consensus estimate would represent a 6.38% increase in the company's earnings. Revenue would be up 10.31% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2021 Q2 2021 Q1 2021EPS Estimate 0.45 0.38 0.37 0.32EPS Actual 0.47 0.39 0.47 0.36Revenue Estimate 532.46 M 448.97 M 442.46 M 453.78 MRevenue Actual 526.10 M 490.40 M 493.60 M 449.10 M

Stock Performance

Over the last 52-week period, shares are up 64.08%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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