Benzinga | Nov 5, 2020 10:09AM EST

Earnings Preview: Hawaiian Electric Indus

Hawaiian Electric Indus (NYSE: HE) 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 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

Analysts covering Hawaiian Electric Indus modeled for quarterly EPS of $0.51 on revenue of $785.04 million. Hawaiian Electric Indus EPS in the same period a year ago totaled $0.58. Revenue was $771.53 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.

If the company were to match the consensus estimate, earnings would be down 12.07%. Sales would be up 1.75% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.37 0.45 0.51 0.60EPS Actual 0.45 0.31 0.61 0.58Revenue Estimate 639.66 M 682.31 M 760.95 M 814.36 MRevenue Actual 608.95 M 677.19 M 725.97 M 771.53 M

Stock Performance

Over the past 52-week period, shares of Hawaiian Electric Indus have declined 22.18%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hawaiian Electric Indus is scheduled to hold the call at 16:15:00 ET and can be accessed here.