EuroDry Earnings Preview

EuroDry EDRY will be releasing its next round of earnings this Thursday, May 20. For all of the relevant information, here is your guide for Thursday's Q1 earnings announcement.

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

EuroDry EPS is expected to be around $0.27, according to sell-side analysts. Sales will likely be near $7.25 million. In the same quarter last year, EuroDry reported EPS of $0.91 on revenue of $5.07 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 129.67%. Revenue would be up 43.11% 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

Over the last 52-week period, shares are up 260.64%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. EuroDry is scheduled to hold the call at 09:30:00 ET and can be accessed here.