On Thursday, May 27, Hoegh LNG Partners (NYSE:HMLP) will release its latest earnings report. Benzinga’s report can help you figure out the ins and outs of the earnings release.
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 Hoegh LNG Partners modeled for quarterly EPS of $0.4 on revenue of $35.48 million. Hoegh LNG Partners reported a profit of $0.07 per share when it published results during the same quarter last year. Sales in that period totaled $36.69 million.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the “consensus estimates”; these consensus estimates can have a significant effect on a company’s performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an “earnings surprise”, which can really move a stock depending on the difference between actual and estimated values.
If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 471.43%. Revenue would be down 3.29% on a year-over-year basis. The company’s reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.44 | 0.41 | 0.34 | 0.37 |
| EPS Actual | 0.46 | 0.49 | 0.50 | 0.07 |
| Revenue Estimate | 35.83 M | 35.37 M | 35.30 M | 36.56 M |
| Revenue Actual | 36.06 M | 35.91 M | 34.44 M | 36.69 M |
Stock Performance
Over the last 52-week period, shares are up 61.74%. 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. Hoegh LNG Partners is scheduled to hold the call at 08:30:00 ET and can be accessed here.
