Earnings Outlook for Digi International

Digi International DGII will be releasing its next round of earnings this Wednesday, May 05. For all of the relevant information, here is your guide for Wednesday's Q2 earnings announcement.

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

Digi International EPS is expected to be around $0.08, according to sell-side analysts. Sales will likely be near $74.01 million. Digi International reported a per-share profit of $0.28 when it published results during the same quarter last year. Sales in that period totaled $73.45 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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 71.43%. Sales would be up 0.77% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Digi International were trading at $18.2 as of May 03. Over the last 52-week period, shares are up 68.28%. 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. Digi International is scheduled to hold the call at 17:00:00 ET and can be accessed here.