NextGen Healthcare's Earnings: A Preview

NextGen Healthcare NXGN announces its next round of earnings this Wednesday, May 26. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 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 NextGen Healthcare management projections, analysts predict EPS of $0.19 on revenue of $140.10 million. NextGen Healthcare reported a profit of $0.2 per share when it published results during the same quarter last year. Sales in that period totaled $136.38 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.

The analyst consensus estimate would represent a 5.0% decrease in the company's earnings. Sales would be up 2.73% 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

Over the last 52-week period, shares are up 60.09%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. NextGen Healthcare is scheduled to hold the call at 17:00:00 ET and can be accessed here.