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Gentherm (NASDAQ:THRM) releases its next round of earnings this Monday, March 01. Here is Benzinga's essential guide to Gentherm's Q4 earnings 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
Based on Gentherm management projections, analysts predict EPS of $0.65 on revenue of $249.51 million. In the same quarter last year, Gentherm posted EPS of $0.65 on sales of $230.38 million.
Why Analyst Estimates And Earnings Surprises Are Important
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 post earnings in line with the consensus estimate when it reports Monday, EPS would be down 0%. Revenue would be up 8.3% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
Shares of Gentherm were trading at $70.53 as of February 25. Over the last 52-week period, shares are up 67.07%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Gentherm is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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