Benzinga | Jul 19, 2021 10:36AM EDT

Earnings Preview For Signature Bank

Signature Bank (NASDAQ:SBNY) unveils its next round of earnings this Tuesday, July 20. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Based on management's projections, Signature Bank analysts model for earnings of $3.14 per share on sales of $466.52 million. In the same quarter last year, Signature Bank posted EPS of $2.21 on sales of $399.80 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Tuesday, EPS would be up 42.08%. Revenue would be up 16.69% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 2.85 2.89 2.76 2.24EPS Actual 3.24 3.26 2.62 2.21Revenue Estimate 430.65 M 419.43 M 421.41 M 389.14 MRevenue Actual 439.21 M 419.17 M 412.93 M 399.80 M

Stock Performance

Shares of Signature Bank were trading at $235.89 as of July 16. Over the last 52-week period, shares are up 107.97%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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