Earnings Outlook for iRadimed

iRadimed IRMD announces its next round of earnings this Friday, April 30. Here is Benzinga's look at iRadimed's Q1 earnings report.

What Are Earnings, Net Income, 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

Wall Street analysts see iRadimed reporting earnings of $0.59 per share on sales of $8.56 million. In the same quarter last year, iRadimed announced EPS of $0.18 on revenue of $8.68 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.

The analyst consensus estimate would represent a 227.78% increase in the company's earnings. Revenue would be down 1.36% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of iRadimed were trading at $26.41 as of April 28. Over the last 52-week period, shares are up 34.78%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. iRadimed is scheduled to hold the call at 11:00:00 ET and can be accessed here.