On Wednesday, July 21, SEI Investments (NASDAQ:SEIC) will report its last quarter’s earnings. Here is Benzinga’s preview of the company’s release.
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
Based on management’s projections, SEI Investments analysts model for earnings of $0.91 per share on sales of $462.24 million. In the same quarter last year, SEI Investments reported EPS of $0.68 on revenue of $400.65 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.
If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 33.82%. Sales would be up 15.37% from the same quarter last year. 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
0.88
0.80
0.79
0.68
EPS Actual
0.89
0.86
0.75
0.68
Revenue Estimate
455.00 M
436.79 M
418.13 M
401.01 M
Revenue Actual
455.69 M
443.72 M
424.93 M
400.65 M
Stock Performance
Over the last 52-week period, shares are up 4.59%. 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. SEI Investments is scheduled to hold the call at 16:30:00 ET and can be accessed here.
