On Tuesday, February 09, CTS (NYSE:CTS) will release its latest earnings report. Benzinga's outlook for CTS is included in the following report.
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
Sell-side analysts expect CTS's EPS to be near $0.33 on sales of $117.02 million. CTS earnings in the same period a year ago was $0.37 per share. Quarterly sales came in at $115.04 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 10.81%. Revenue would be up 1.72% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:
Shares of CTS were trading at $32.565 as of February 05. Over the last 52-week period, shares are up 10.61%. 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. CTS is scheduled to hold the call at 10:00:00 ET and can be accessed here.
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