Redhill Biopharma RDHL will be releasing its next round of earnings this Thursday, August 26. For all of the relevant information, here is your guide for Thursday's Q2 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
Wall Street expects an EPS loss of $-0.12 and sales around $25.02 million. In the same quarter last year, Redhill Biopharma posted EPS of $0.04 on sales of $20.90 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 Thursday, earnings would be down 400.0%. Revenue would be up 19.72% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | -0.34 | -0.24 | -0.16 | -0.07 |
| EPS Actual | -0.05 | -0.07 | -0.05 | -0.04 |
| Revenue Estimate | 22.70 M | 26.03 M | 25.37 M | 22.99 M |
| Revenue Actual | 20.57 M | 21.46 M | 20.94 M | 20.90 M |
Want Real-Time Earnings Calendar Updates?
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Stock Performance
Shares of Redhill Biopharma were trading at $7.59 as of August 24. Over the last 52-week period, shares are down 2.49%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Redhill Biopharma is scheduled to hold the call at 08:30:00 ET and can be accessed here.
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