Avangrid (NYSE:AGR) announces its next round of earnings this Tuesday, July 20. Here is Benzinga’s everything-that-matters guide for this Tuesday’s Q2 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 Avangrid modeled for quarterly EPS of $0.41 on revenue of $1.52 billion. In the same quarter last year, Avangrid reported EPS of $0.32 on revenue of $1.39 billion.
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 28.12% increase in the company’s earnings. Revenue would be up 9.2% from the year-ago period. Here is how the company’s EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.74 | 0.57 | 0.41 | 0.34 |
| EPS Actual | 1.14 | 0.62 | 0.32 | 0.32 |
| Revenue Estimate | 1.81 B | 1.70 B | 1.52 B | 1.45 B |
| Revenue Actual | 1.97 B | 1.67 B | 1.47 B | 1.39 B |
Stock Performance
Over the last 52-week period, shares are up 13.37%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Avangrid is scheduled to hold the call at 10:00:00 ET and can be accessed here.
