Earnings Preview for Twist Bioscience
On Monday, November 23, Twist Bioscience (NASDAQ: TWST) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Analysts are expecting Twist Bioscience to report a loss of $0.7 per share. Revenue will likely be around $22.67 million, according to the consensus estimate. Twist Bioscience's loss in the same period a year ago was $0.96 per share. Quarterly sales came in at $15.74 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.
If the company were to report earnings in line when it publishes results Monday, earnings would be up 27.08%. Sales would be up 44.06% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:
EPS Estimate | -0.73 | -0.75 | -0.83 | -0.83 |
EPS Actual | -0.67 | -0.85 | -1 | -0.96 |
Revenue Estimate | 14.17 M | 18.27 M | 16.07 M | 14.05 M |
Revenue Actual | 21.21 M | 19.30 M | 17.16 M | 15.74 M |
Stock Performance
Shares of Twist Bioscience were trading at $114.5 as of November 19. Over the last 52-week period, shares are up 381.86%. 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. Twist Bioscience is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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