Keysight Technologies KEYS will be releasing its next round of earnings this Wednesday, May 19. For all of the relevant information, here is your guide for Wednesday'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
Based on Keysight Technologies management projections, analysts predict EPS of $1.33 on revenue of $1.20 billion. Keysight Technologies EPS in the same period a year ago totaled $0.78. Sales were $892.00 million.
Why Analyst Estimates And Earnings Surprises Are Important
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 match the consensus estimate when it reports Wednesday, EPS would be up 70.51%. Sales would be have grown 34.53% from the same quarter last year. Keysight Technologies's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.37 | 1.46 | 0.83 | 1.20 |
| EPS Actual | 1.43 | 1.62 | 1.19 | 0.78 |
| Revenue Estimate | 1.15 B | 1.18 B | 927.45 M | 1.11 B |
| Revenue Actual | 1.18 B | 1.22 B | 1.01 B | 892.00 M |
Stock Performance
Shares of Keysight Technologies were trading at $139.54 as of May 17. Over the last 52-week period, shares are up 34.95%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Keysight Technologies is scheduled to hold the call at 16:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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