Benzinga | Nov 23, 2020 10:15AM EST

Earnings Outlook For Eaton Vance

Eaton Vance (NYSE: EV) unveils its next round of earnings this Tuesday, November 24. Here is Benzinga's everything-that-matters guide for the 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

Eaton Vance EPS is expected to be around $0.87, according to sell-side analysts. Sales will likely be near $440.64 million. Eaton Vance reported a profit of $0.95 per share when it published results during the same quarter last year. Sales in that period totaled $433.74 million.

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.

The Wall Street estimate would represent a 8.42% decline in the company's earnings. Sales would be up 1.59% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019EPS Estimate 0.78 0.76 0.84 0.88EPS Actual 0.82 0.80 0.86 0.95Revenue Estimate 406.23 M 427.78 M 444.20 M 439.75 MRevenue Actual 420.82 M 405.91 M 452.55 M 433.74 M

Stock Performance

Over the last 52-week period, shares are up 39.79%. Given that these returns are generally positive, long-term shareholders can relax 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. Eaton Vance is scheduled to hold the call at 11:00:00 ET and can be accessed here.