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A Preview Of NeoPhotonics's Earnings

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NeoPhotonics (NYSE: NPTN) releases its next round of earnings this Monday, November 02. Here is Benzinga's essential guide to NeoPhotonics's Q3 earnings report.

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 covering NeoPhotonics modeled for quarterly EPS of $0.11 on revenue of $101.67 million. NeoPhotonics EPS in the same period a year ago totaled $0.11. Revenue was $92.39 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.

If the company were to report earnings in line when it publishes results Monday, quarterly profit would be down 0%. Revenue would be up 10.04% from the same quarter last year. 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 0.12 0.05 0.1 0.02
EPS Actual 0.16 0.17 0.1 0.11
Revenue Estimate 99.00 M 86.50 M 97.44 M 89.77 M
Revenue Actual 103.17 M 97.40 M 103.36 M 92.39 M

Stock Performance

Shares of NeoPhotonics were trading at $7 as of October 29. Over the last 52-week period, shares are down 13.78%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. NeoPhotonics is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings