On Friday, July 16, $Autoliv Inc(ALV.US)$ 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
Autoliv earnings will be near $1.44 per share on sales of $2.13 billion, according to analysts. In the same quarter last year, Autoliv posted a loss of $1.4 per share on sales of $1.05 billion.
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 Friday, quarterly profit would be up 202.86%. Sales would be have grown 103.24% from the same quarter last year. Here is how the Autoliv's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.43 | 1.93 | 1.02 | -0.85 |
| EPS Actual | 1.79 | 2.19 | 1.48 | -1.40 |
| Revenue Estimate | 2.18 B | 2.41 B | 1.91 B | 1.06 B |
| Revenue Actual | 2.24 B | 2.52 B | 2.04 B | 1.05 B |
Stock Performance
Data From Bloomberg
Do not be surprised to see the stock move on comments made during its conference call. Autoliv is scheduled to hold the call at 08:00:00 ET.