Benzinga | Jan 22, 2021 10:18AM EST

AGNC Investment's Earnings: A Preview

On Monday, January 25, AGNC Investment (NASDAQ:AGNC) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, 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

Wall Street analysts see AGNC Investment reporting earnings of $0.65 per share on sales of $362.11 million. In the same quarter last year, AGNC Investment announced EPS of $0.57 on revenue of $287.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 post earnings in line with the consensus estimate when it reports Monday, EPS would be up 14.04%. Sales would be up 26.17% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.56 0.46 0.56 0.55EPS Actual 0.81 0.58 0.57 0.57Revenue Estimate 366.27 M 298.94 M 331.91 M 279.17 MRevenue Actual 302.00 M 295.00 M 65.00 M 287.00 M

Stock Performance

Over the past 52-week period, shares of AGNC Investment have declined 12.36%.

Do not be surprised to see the stock move on comments made during its conference call. AGNC Investment is scheduled to hold the call at 08:30:00 ET and can be accessed here.