Earnings Preview: Eagle Pharmaceuticals
Eagle Pharmaceuticals (NASDAQ:EGRX) announces its next round of earnings this Tuesday, March 02. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.
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 are expecting Eagle Pharmaceuticals's loss per share to be near $0.17 on sales of $53.16 million. In the same quarter last year, Eagle Pharmaceuticals announced EPS of $0.48 on revenue of $48.26 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.
The analyst consensus estimate would represent a 135.42% decline in the company's EPS figure. Sales would be up 10.16% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:
EPS Estimate | 0.28 | 0.26 | 0.57 | 0.49 |
EPS Actual | 1.17 | 0.57 | 0.84 | 0.48 |
Revenue Estimate | 47.02 M | 42.28 M | 51.10 M | 49.07 M |
Revenue Actual | 49.93 M | 41.94 M | 46.02 M | 48.26 M |
Stock Performance
Shares of Eagle Pharmaceuticals were trading at $44.5 as of February 26. Over the last 52-week period, shares are up 1.63%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Eagle Pharmaceuticals is scheduled to hold the call at 08:30:00 ET and can be accessed here.
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