Adtran Earnings Preview
Adtran (NASDAQ:ADTN) will be releasing its next round of earnings this Wednesday, February 03. For all of the relevant information, here is your guide for Wednesday's Q4 earnings announcement.
Net Income, Earnings, 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 $0.07 and sales around $127.77 million. In the same quarter last year, Adtran reported EPS of $0.07 on revenue of $115.79 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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 200.0%. Revenue would be up 10.35% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | 0.07 | 0.01 | -0.10 | -0.13 |
EPS Actual | 0.16 | 0.04 | -0.05 | -0.07 |
Revenue Estimate | 132.86 M | 127.92 M | 113.64 M | 111.56 M |
Revenue Actual | 133.14 M | 128.72 M | 114.52 M | 115.79 M |
Stock Performance
Over the last 52-week period, shares are up 71.3%. 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. Adtran is scheduled to hold the call at 10:30:00 ET and can be accessed here.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
