Earnings Outlook for Photronics

On Wednesday, May 26, Photronics PLAB will release its latest earnings report. Here is Benzinga's outlook for the company.

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 Photronics management projections, analysts predict EPS of $0.17 on revenue of $158.27 million. In the same quarter last year, Photronics reported earnings per share of $0.1 on revenue of $142.77 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 report earnings in line when it publishes results Wednesday, earnings would be up 70.0%. Revenue would be have grown 10.85% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Photronics were trading at $13.57 as of May 24. Over the last 52-week period, shares are up 12.87%. 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. Photronics is scheduled to hold the call at 08:30:00 ET and can be accessed here.