A Preview Of Vuzix's Earnings

Vuzix VUZI releases its next round of earnings this Monday, May 10. Here is Benzinga's essential guide to Vuzix'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

Based on Vuzix management projections, analysts predict EPS of $0.1 on revenue of $3.83 million. Vuzix EPS in the same period a year ago totaled $0.18. Sales were $1.53 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 match the consensus estimate, earnings would be up 44.44%. Revenue would be up 150.0% 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 Vuzix were trading at $19.9 as of May 06. Over the last 52-week period, shares are up 633.82%. 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. Vuzix is scheduled to hold the call at 16:30:00 ET and can be accessed here.