Benzinga | Nov 5, 2020 10:10AM EST

Essent Gr Earnings Preview

Essent Gr (NYSE: ESNT) announces its next round of earnings this Friday, November 06. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Essent Gr will report earnings of $0.99 per share on revenue of $239.58 million. In the same quarter last year, Essent Gr reported earnings per share of $1.47 on sales of $226.39 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.

The Wall Street estimate would represent a 32.65% decline in the company's earnings. Revenue would be up 5.83% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.50 1.45 1.44 1.38EPS Actual 0.15 1.52 1.49 1.47Revenue Estimate 225.61 M 231.25 M 227.63 M 216.40 MRevenue Actual 236.08 M 228.84 M 228.76 M 226.39 M

Stock Performance

Shares of Essent Gr were trading at $41.88 as of November 04. Over the last 52-week period, shares are down 20.64%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

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