Sun Life Financial Earnings Preview

On Wednesday, August 04, Sun Life Financial (NYSE:SLF) 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 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

Analysts covering Sun Life Financial modeled for quarterly EPS of $0.89 on revenue of $6.38 billion. In the same quarter last year, Sun Life Financial reported EPS of $0.91 on revenue of $10.95 billion.

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 report earnings in line when it publishes results Wednesday, quarterly profit would be down 2.2%. Sales would be down 41.76% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter	Q1 2021	Q4 2020	Q3 2020	Q2 2020
EPS Estimate	0.89	0.89	0.89	0.89
EPS Actual	1.14	1.13	1.08	0.91
Revenue Estimate	6.38 B	6.38 B	6.38 B	6.38 B
Revenue Actual	1.20 B	8.94 B	7.53 B	10.95 B

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Sun Life Financial were trading at $51.83 as of August 02. Over the last 52-week period, shares are up 27.89%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Sun Life Financial is scheduled to hold the call at 15:00:00 ET and can be accessed here.