Earnings Preview for Turtle Beach

Turtle Beach HEAR announces its next round of earnings this Wednesday, May 05. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.

Net Income, Earnings, 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

Based on Turtle Beach management projections, analysts predict EPS of $0.46 on revenue of $88.01 million. Turtle Beach reported a loss of $0.23 when it published results during the same quarter last year. Sales in that period totaled $35.01 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 Wednesday, EPS would be up 300.0%. Sales would be have grown 151.41% from the same quarter last year. Turtle Beach's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Turtle Beach were trading at $26.8 as of May 03. Over the last 52-week period, shares are up 153.7%. 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. Turtle Beach is scheduled to hold the call at 17:00:00 ET and can be accessed here.