Benzinga | Jan 20, 2021 10:19AM EST

BankUnited's Earnings Outlook

On Thursday, January 21, BankUnited (NYSE:BKU) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Based on management's projections, BankUnited analysts model for earnings of $0.7 per share on sales of $225.30 million. BankUnited reported a profit of $0.91 per share when it published results during the same quarter last year. Sales in that period totaled $223.07 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 23.08%. Sales would be have grown 1.0% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.63 0.22 0.49 0.72EPS Actual 0.70 0.80 -0.33 0.91Revenue Estimate 229.49 M 215.68 M 214.49 M 219.99 MRevenue Actual 223.77 M 228.69 M 203.87 M 223.07 M

Stock Performance

Over the last 52-week period, shares of BankUnited are up 9.64%.

Do not be surprised to see the stock move on comments made during its conference call. BankUnited is scheduled to hold the call at 09:00:00 ET and can be accessed here.