Benzinga | Feb 23, 2021 10:12AM EST

Earnings Outlook for AMERISAFE

AMERISAFE (NASDAQ:AMSF) announces its next round of earnings this Wednesday, February 24. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

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 expects EPS of $1.47 and sales around $553.37 million. In the same quarter last year, AMERISAFE reported earnings per share of $1.7 on revenue of $91.94 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.

The Wall Street estimate would represent a 13.53% decline in the company's earnings. Sales would be up 501.89% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.72 0.69 0.79 0.81EPS Actual 1.16 1 0.88 1.70Revenue Estimate 82.85 M 80.38 M 86.27 M 90.13 MRevenue Actual 83.00 M 89.08 M 79.17 M 91.94 M

Stock Performance

Over the past 52-week period, shares of AMERISAFE have declined 18.8%.

Do not be surprised to see the stock move on comments made during its conference call. AMERISAFE is scheduled to hold the call at 10:30:00 ET and can be accessed here.