So-Young International's Earnings: A Preview

On Wednesday, May 19, So-Young International SY will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Wall Street analysts see So-Young International reporting earnings of $0.09 per share on sales of $50.93 million. In the same quarter last year, So-Young International reported EPS of $0.06 on revenue of $25.78 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 match the consensus estimate, earnings would be up 250.0%. Revenue would be have grown 97.54% 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 So-Young International were trading at $8.91 as of May 17. Over the last 52-week period, shares are down 19.86%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. So-Young International is scheduled to hold the call at 07:30:00 ET and can be accessed here.