On Monday, May 17, Reed's (NASDAQ:REED) 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

Analysts are predicting Reed's will report a loss of $0.03 per share on revenue of $10.90 million. In the same quarter last year, Reed's announced EPS of $0.05 on revenue of $9.52 million.

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

The Wall Street consensus estimate for earnings would represent a 40.0% increase for the company. Sales would be have grown 14.46% 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

Over the last 52-week period, shares are up 31.1%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Reed's is scheduled to hold the call at 16:30:00 ET and can be accessed here.