On Monday, April 26, Ebix EBIX will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
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 expect Ebix's EPS to be near $0.79 on sales of $187.53 million. Ebix EPS in the same period a year ago totaled $1.04. Revenue was $146.18 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 match the consensus estimate when it reports Monday, EPS would have fallen 24.04%. Revenue would be up 28.28% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
Quarter | Q3 2020 | Q2 2020 | Q1 2020 |
---|---|---|---|
EPS Estimate | 0.80 | 0.38 | 0.86 |
EPS Actual | 0.93 | 0.88 | 0.96 |
Revenue Estimate | 119.18 M | 110.95 M | 152.85 M |
Revenue Actual | 154.31 M | 111.31 M | 137.88 M |
Stock Performance
Over the last 52-week period, shares are up 60.69%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Ebix is scheduled to hold the call at 11:00:00 ET and can be accessed here.
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