10x Genomics's Earnings: A Preview

On Wednesday, May 05, 10x Genomics TXG will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings 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

Sell-side analysts are expecting 10x Genomics's loss per share to be near $0.27 on sales of $102.51 million. In the same quarter last year, 10x Genomics posted a loss of $0.22 per share on sales of $71.91 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 report earnings in line when it publishes results Wednesday, earnings would be down 22.73%. Sales would be up 42.56% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of 10x Genomics were trading at $192.58 as of May 03. Over the last 52-week period, shares are up 135.15%. 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. 10x Genomics is scheduled to hold the call at 16:30:00 ET and can be accessed here.