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Analog Devices (NASDAQ:ADI) unveils its next round of earnings this Wednesday, May 19. Get prepared with Benzinga's ultimate preview for Analog Devices's Q2 earnings.
What Are Earnings, Net Income, And Earnings Per Share?
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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
Analog Devices EPS will likely be near $1.45 while revenue will be around $1.61 billion, according to analysts. Analog Devices EPS in the same period a year ago totaled $1.08. Revenue was $1.32 billion.
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 match the consensus estimate when it reports Wednesday, earnings would be up 34.26%. Sales would be up 22.25% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.32 | 1.32 | 1.28 | 1.04 |
| EPS Actual | 1.44 | 1.44 | 1.36 | 1.08 |
| Revenue Estimate | 1.51 B | 1.44 B | 1.43 B | 1.33 B |
| Revenue Actual | 1.56 B | 1.53 B | 1.46 B | 1.32 B |
Stock Performance
Shares of Analog Devices were trading at $148.1 as of May 17. Over the last 52-week period, shares are up 30.01%. 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. Analog Devices is scheduled to hold the call at 10:00:00 ET and can be accessed here.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.