Earnings Preview for ACM Research
ACM Research (NASDAQ: ACMR) announces its next round of earnings this Thursday, November 05. Here is Benzinga's look at ACM Research's Q3 earnings report.
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 $0.37 and sales around $45.47 million. ACM Research reported a per-share profit of $0.53 when it published results during the same quarter last year. Sales in that period totaled $33.43 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 Thursday, EPS would have fallen 30.19%. Revenue would be up 36.03% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:
EPS Estimate | 0.19 | 0.04 | 0.09 | 0.20 |
EPS Actual | 0.29 | 0.11 | 0.23 | 0.53 |
Revenue Estimate | 31.32 M | 19.77 M | 22.99 M | 29.58 M |
Revenue Actual | 39.05 M | 24.35 M | 24.61 M | 33.43 M |
Stock Performance
Shares of ACM Research were trading at $79.96 as of November 03. Over the last 52-week period, shares are up 426.55%. 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. ACM Research is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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