A Preview Of Astronics's Earnings

On Friday, October 30, Astronics ATRO will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, 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

Analysts are expecting Astronics to report a loss of $0.24 per share. Revenue will likely be around $109.58 million, according to the consensus estimate. Astronics posted a break-even quarter on revenue of $177.02 million in the same quarter last year.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 post earnings in line with the consensus estimate when it reports Friday, EPS would be down 0%. Revenue would be down 38.1% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.31 -0.05 -0.11 0.26
EPS Actual -0.36 0.06 0.19 0
Revenue Estimate 110.03 M 146.83 M 195.00 M 174.51 M
Revenue Actual 123.69 M 157.58 M 198.41 M 177.02 M

Stock Performance

Shares of Astronics were trading at $6.62 as of October 28. Over the last 52-week period, shares are down 78.39%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Astronics is scheduled to hold the call at 11:00:00 ET and can be accessed here.

Posted In: Earnings