Preview: S&W Seed's Earnings
On Wednesday, November 11, S&W Seed (NASDAQ: SANW) will release its latest earnings report. Decipher the announcement with Benzinga's help.
Net Income, Earnings, 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 S&W Seed's loss per share to be near $0.18 on sales of $11.83 million. S&W Seed's loss in the same period a year ago was $0.13 per share. Quarterly sales came in at $12.27 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 Wednesday, EPS would be down 38.46%. Revenue would be down 3.6% from the same quarter last year. S&W Seed's reported EPS has stacked up against analyst estimates in the past like this:
EPS Estimate | -0.06 | -0.11 | -0.14 | -0.15 |
EPS Actual | -0.14 | -0.09 | -0.19 | -0.13 |
Revenue Estimate | 25.73 M | 21.17 M | 10.73 M | 9.77 M |
Revenue Actual | 25.86 M | 29.09 M | 12.35 M | 12.27 M |
Stock Performance
Shares of S&W Seed were trading at $2.31 as of November 09. Over the last 52-week period, shares are up 0.93%. 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. S&W Seed is scheduled to hold the call at 11:00:00 ET and can be accessed here.
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