Benzinga | Jul 20, 2021 10:45AM EDT

Earnings Outlook For Globe Life

Globe Life (NYSE:GL) announces its next round of earnings this Wednesday, July 21. Here is Benzinga's everything-that-matters guide for this Wednesday's Q2 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

Globe Life EPS will likely be near $1.83 while revenue will be around $1.24 billion, according to analysts. In the same quarter last year, Globe Life reported EPS of $1.65 on revenue of $1.18 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 match the consensus estimate when it reports Wednesday, earnings would be up 10.91%. Sales would be up 5.0% 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 1.62 1.72 1.75 1.53EPS Actual 1.53 1.74 1.75 1.65Revenue Estimate 1.24 B 1.20 B 1.19 B 1.16 BRevenue Actual 1.27 B 1.23 B 1.20 B 1.18 B

Stock Performance

For a full 12 months, the return has risen by 21.29%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. Globe Life is scheduled to hold the call at 11:00:00 ET and can be accessed here.