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Waddell & Reed Financial Earnings Preview

Author: Benzinga Insights | February 01, 2021 11:18am

Waddell & Reed Financial (NYSE:WDR) releases its next round of earnings this Tuesday, February 02. Here is Benzinga's essential guide to Waddell & Reed Financial's Q4 earnings report.

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

Wall Street analysts see Waddell & Reed Financial reporting earnings of $0.46 per share on revenue of $270.75 million. In the same quarter last year, Waddell & Reed Financial reported earnings per share of $0.51 on revenue of $270.07 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Tuesday, earnings would be down 9.8%. Sales would be have grown 0.25% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.41 0.32 0.29 0.41
EPS Actual 0.48 0.38 0.32 0.51
Revenue Estimate 262.72 M 242.88 M 254.00 M 268.85 M
Revenue Actual 267.67 M 240.03 M 263.73 M 270.07 M

Stock Performance

Over the last 52-week period, shares are up 51.57%. 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. Waddell & Reed Financial is scheduled to hold the call at 10:00:00 ET and can be accessed here.

Posted In: WDR