Benzinga | Nov 10, 2020 10:06AM EST

Conifer Holdings's Earnings Outlook

Conifer Holdings (NASDAQ: CNFR) unveils its next round of earnings this Wednesday, November 11. Get prepared with Benzinga's ultimate preview for Conifer Holdings's Q3 earnings.

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 Conifer Holdings reporting a loss of $0.03 per share on revenue of $24.12 million. Conifer Holdings EPS in the same period a year ago totaled $0.18. Revenue was $22.77 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 report earnings in line when it publishes results Wednesday, earnings would be up 83.33%. Sales would be up 5.91% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.06 -0.10 -0.17 -0.11EPS Actual -0.04 -0.28 -0.35 -0.18Revenue Estimate 21.52 M 21.55 M 24.94 M 23.69 MRevenue Actual 21.76 M 22.02 M 23.28 M 22.77 M

Stock Performance

Shares of Conifer Holdings were trading at $2.73 as of November 06. Over the last 52-week period, shares are down 34.58%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Conifer Holdings is scheduled to hold the call at 08:30:00 ET and can be accessed here.