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MSC Industrial Direct Co (NYSE:MSM) unveils its next series of results this Wednesday 06 January. Here is the guide to everything that matters about Benzinga when announcing the results.
What are earnings, net income and earnings per share?
Profit and especially earnings per share (EPS) are useful measures of a company’s profitability. Total income, also known as net income, is equal to total income minus total expenses. EPS is equal to net income divided by the number of shares outstanding.
Earnings and income
MSC Industrial Direct Co’s EPS is expected to be around $ 1.08, analysts on the seller side say. Sales will likely reach close to $ 769.80 million. In the same quarter of last year, MSC Industrial Direct Co reported EPS of $ 1.21 on revenue of $ 823.60 million.
Why analyst estimates and earnings surprises matter
Wall Street analysts studying the company will release analysts’ estimates on earnings and EPS. The averages of all EPS and analyst earnings estimates are called “consensus estimates”; these consensus estimates can have a significant effect on the performance of a company when the results are published. When a company shows profits or revenues that are higher or lower than a consensus estimate, they have displayed a “profit surprise,” which can actually move a stock based on the difference between actual and estimated values.
If the company were to match the consensus estimate when it was released on Wednesday, earnings would be down 10.74%. Sales are said to be down 6.53% from the same quarter last year. The EPS reported by the company has compared to analyst estimates in the past like this:
|
EPS estimate |
0.96 |
1.1 |
1 |
1.17 |
|
Actual EPS |
1.09 |
1.4 |
1 |
1.21 |
|
Income estimate |
750.72 million |
807.94 million |
789.68 million |
818.98 million |
|
Actual turnover |
747.73 million |
834.97 million |
786.09 million |
823.60 million |
Equity return
In the most recent 52-week period, stocks have risen 8.46%. Since these returns are generally positive, long-term shareholders can be content with this earnings release.
Do not be surprised to see the action evolve on the words made during his conference call. MSC Industrial Direct Co is to hold the call at 08:30:00 ET and can be accessed here.
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