Benzinga | Feb 25, 2021 10:06AM EST

Earnings Outlook For Cinemark Hldgs

On Friday, February 26, Cinemark Hldgs (NYSE:CNK) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Cinemark Hldgs EPS loss is expected to be around $1.46, according to sell-side analysts. Sales will likely be near $79.77 million. Cinemark Hldgs reported a per-share profit of $0.22 when it published results during the same quarter last year. Sales in that period totaled $788.80 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 report earnings in line when it publishes results Friday, quarterly profit would be down 763.64%. Revenue would have fallen 89.89% from the same quarter last year. Cinemark Hldgs's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -1.32 -1.60 -0.18 0.43EPS Actual -1.25 -1.27 -0.37 0.22Revenue Estimate 93.13 M 11.53 M 556.57 M 812.32 MRevenue Actual 35.48 M 8.97 M 543.62 M 788.80 M

Stock Performance

Shares of Cinemark Hldgs were trading at $24.13 as of February 24. Over the last 52-week period, shares are down 6.2%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

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