Benzinga | Nov 30, 2020 10:06AM EST

Golub Capital BDC's Earnings Outlook

On Tuesday, December 01, Golub Capital BDC (NASDAQ:GBDC) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, 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

Based on management's projections, Golub Capital BDC analysts model for earnings of $0.27 per share on sales of $74.77 million. In the same quarter last year, Golub Capital BDC announced EPS of $0.33 on revenue of $48.98 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be down 18.18%. Sales would be up 52.66% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019EPS Estimate 0.27 0.32 0.34 0.32EPS Actual 0.28 0.33 0.33 0.33Revenue Estimate 73.79 M 82.78 M 91.97 M 64.51 MRevenue Actual 73.21 M 75.12 M 78.61 M 48.98 M

Stock Performance

Over the past 52-week period, shares of Golub Capital BDC have declined 23.4%.

Do not be surprised to see the stock move on comments made during its conference call. Golub Capital BDC is scheduled to hold the call at 11:00:00 ET and can be accessed here.