Benzinga | Jul 29, 2021 10:41AM EDT

Preview: Newell Brands's Earnings

Newell Brands (NASDAQ:NWL) unveils its next round of earnings this Friday, July 30. 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

Wall Street analysts see Newell Brands reporting earnings of $0.45 per share on revenue of $2.55 billion. In the same quarter last year, Newell Brands reported earnings per share of $0.3 on revenue of $2.11 billion.

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 Friday, earnings would be up 50.0%. Sales would be up 20.8% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.13 0.48 0.43 0.18EPS Actual 0.30 0.56 0.84 0.30Revenue Estimate 2.07 B 2.63 B 2.44 B 2.03 BRevenue Actual 2.29 B 2.69 B 2.70 B 2.11 B

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

For a full 12 months, the return has risen by 63.29%. 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. Newell Brands is scheduled to hold the call at 11:00:00 ET and can be accessed here.