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On Thursday, January 28, Mitek Systems (NASDAQ:MITK) will release its latest earnings report. Decipher the announcement with Benzinga's help.
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
Analysts predict Mitek Systems will report earnings of $0.11 per share on revenue of $25.22 million. Mitek Systems reported a per-share profit of $0.12 when it published results during the same quarter last year. Sales in that period totaled $22.07 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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 8.33%. Sales would be up 14.29% on a year-over-year basis. Here is how the Mitek Systems's reported EPS has stacked up against analyst estimates in the past:
Shares of Mitek Systems were trading at $17.65 as of January 26. Over the last 52-week period, shares are up 75.61%. 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. Mitek Systems is scheduled to hold the call at 16:30:00 ET and can be accessed here.
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