Benzinga | Oct 30, 2020 11:13AM EDT

Horace Mann Educators Earnings Preview

On Monday, November 02, Horace Mann Educators (NYSE: HMN) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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 Horace Mann Educators reporting earnings of $0.7 per share on sales of $334.80 million. In the same quarter last year, Horace Mann Educators announced EPS of $0.64 on revenue of $334.40 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Monday, EPS would be up 9.37%. Sales would be up 0.12% on a year-over-year basis. Horace Mann Educators's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.39 0.69 0.72 0.63EPS Actual 0.67 0.78 0.75 0.64Revenue Estimate 329.75 M 329.80 M 339.00 M 311.35 MRevenue Actual 314.90 M 307.30 M 331.40 M 334.40 M

Stock Performance

Shares of Horace Mann Educators were trading at $34.32 as of October 29. Over the last 52-week period, shares are down 21.34%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Horace Mann Educators is scheduled to hold the call at 09:00:00 ET and can be accessed here.