Benzinga | Mar 9, 2021 10:08AM EST

Fortuna Silver Mines's Earnings Outlook

Fortuna Silver Mines (NYSE:FSM) announces its next round of earnings this Wednesday, March 10. 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 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

Wall Street expects EPS of $0.1 and sales around $67.00 million. Fortuna Silver Mines reported a per-share profit of $0.07 when it published results during the same quarter last year. Sales in that period totaled $69.00 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 match the consensus estimate when it reports Wednesday, EPS would be up 42.86%. Sales would be down 2.9% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.11 0.10 0.11 0.10EPS Actual 0.09 -0.03 -0.01 0.07Revenue Estimate 67.00 M 67.00 M 67.00 M 67.00 MRevenue Actual 83.40 M 44.48 M 47.50 M 69.00 M

Stock Performance

Over the last 52-week period, shares are up 162.97%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Fortuna Silver Mines is scheduled to hold the call at 12:00:00 ET and can be accessed here.