Preview: Standard Motor Products's Earnings
On Tuesday, February 23, Standard Motor Products (NYSE:SMP) 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
Analysts covering Standard Motor Products modeled for quarterly EPS of $0.68 on revenue of $254.29 million. In the same quarter last year, Standard Motor Products announced EPS of $0.59 on revenue of $241.25 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 consensus estimate for earnings would represent a 15.25% increase for the company. Revenue would be up 5.4% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | 1 | 0.32 | 0.47 | 0.55 |
EPS Actual | 1.59 | 0.52 | 0.43 | 0.59 |
Revenue Estimate | 323.50 M | 228.74 M | 273.31 M | 250.69 M |
Revenue Actual | 343.61 M | 247.94 M | 254.30 M | 241.25 M |
Stock Performance
Shares of Standard Motor Products were trading at $40.78 as of February 19. Over the last 52-week period, shares are up 10.3%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Standard Motor Products is scheduled to hold the call at 11:00:00 ET and can be accessed here.
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