Market Overview

Earnings Outlook for Cree

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Cree (NASDAQ: CREE) unveils its next round of earnings this Wednesday, October 28. Get prepared with Benzinga's ultimate preview for Cree's Q1 earnings.

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

Sell-side analysts are expecting Cree's loss per share to be near $0.21 on sales of $209.88 million. Cree's loss in the same period a year ago was $0.03 per share. Quarterly sales came in at $242.80 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.

The analyst consensus estimate would represent a 600.0% decrease in the company's earnings. Sales would be down 13.56% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019
EPS Estimate -0.19 -0.15 -0.09 -0.05
EPS Actual -0.18 -0.14 -0.10 -0.03
Revenue Estimate 198.70 M 222.75 M 236.38 M 239.71 M
Revenue Actual 205.70 M 215.50 M 239.90 M 242.80 M

Stock Performance

Shares of Cree were trading at $71.19 as of October 26. Over the last 52-week period, shares are up 47.37%. 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. Cree is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings