On Wednesday, March 10, Ascendis Pharma (NASDAQ:ASND) will release its latest earnings report. Benzinga's outlook for Ascendis Pharma 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
Ascendis Pharma's per-share loss will be near $1.84 on sales of $2.00 million, according to Wall Street analysts. In the same quarter last year, Ascendis Pharma announced EPS of $1.89 on revenue of $2.78 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.
The analyst consensus estimate would represent a 2.65% increase in the company's EPS figure. Revenue would have fallen 28.14% from the same quarter last year. Here is how the Ascendis Pharma's reported EPS has stacked up against analyst estimates in the past:
Shares of Ascendis Pharma were trading at $141.26 as of March 08. Over the last 52-week period, shares are up 21.96%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Ascendis Pharma is scheduled to hold the call at 16:30:00 ET and can be accessed here.
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