Preview: Mitek Systems Earnings

On Thursday, April 29, Mitek Systems MITK will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Mitek Systems EPS is expected to be around $0.14, according to sell-side analysts. Sales will likely be near $26.55 million. In the same quarter last year, Mitek Systems reported EPS of $0.13 on revenue of $23.19 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 7.69%. Revenue would be up 14.48% 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

Shares of Mitek Systems were trading at $16.94 as of April 27. Over the last 52-week period, shares are up 76.31%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Mitek Systems is scheduled to hold the call at 16:30:00 ET and can be accessed here.