Preview: CooTek (Cayman)'s Earnings

CooTek (Cayman) CTK announces its next round of earnings this Tuesday, December 15. Here is Benzinga's everything-that-matters guide for this Tuesday's Q3 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 $0.25 and sales around $112.16 million. CooTek (Cayman)'s loss in the same period a year ago was $0.24 per share. Quarterly sales came in at $31.27 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 Tuesday, earnings would be down 4.17%. Revenue would be up 258.68% from the year-ago period. Here is how the CooTek (Cayman)'s reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of CooTek (Cayman) were trading at $4.88 as of December 11. Over the last 52-week period, shares are up 1.6%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CooTek (Cayman) is scheduled to hold the call at 08:00:00 ET and can be accessed here.