Market Overview

Tesla's Earnings Outlook

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On Wednesday, October 21, Tesla (NASDAQ: TSLA) will release its latest earnings report. Benzinga's outlook for Tesla is included in the following report.

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

Analysts predict Tesla will report earnings of $0.56 per share on revenue of $8.26 billion. Tesla earnings in the same period a year ago was $1.86 per share. Quarterly sales came in at $6.30 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of its revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates," and these consensus estimates can have a significant effect on a company's performance when it releases earnings.

The analyst consensus estimate would represent a 69.89% decrease in the company's earnings. Revenue would be up 31.05% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.11 -0.36 1.72 -0.42
EPS Actual 2.18 1.14 2.14 1.86
Revenue Estimate 5.23 B 5.90 B 7.02 B 6.34 B
Revenue Actual 6.04 B 5.99 B 7.38 B 6.30 B

Stock Performance

Shares of Tesla were trading at $430.83 as of October 19. Over the last 52-week period, shares are up 737.84%. 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. Tesla is scheduled to hold the call at 17:30:00 ET and can be accessed here: https://ir.tesla.com/

 

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Posted-In: Earnings