Market Overview

A Preview Of GW Pharmaceuticals's Earnings

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GW Pharmaceuticals (NASDAQ: GWPH) unveils its next round of earnings this Tuesday, November 03. Get prepared with Benzinga's ultimate preview for GW Pharmaceuticals's Q3 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

Wall Street analysts see GW Pharmaceuticals reporting a quarterly loss of $0.82 per share on sales of $127.69 million. In the same quarter last year, GW Pharmaceuticals reported EPS of $0.06 on revenue of $72.04 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 Tuesday, earnings would be down 1266.67%. Sales would be up 77.25% from the same quarter last year. 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 -0.63 -0.85 -0.75 -0.87
EPS Actual -0.02 -0.02 -0.07 -0.04
Revenue Estimate 120.31 M 108.36 M 105.10 M 85.91 M
Revenue Actual 121.30 M 120.63 M 109.08 M 90.97 M

Stock Performance

Shares of GW Pharmaceuticals were trading at $90.01 as of October 29. Over the last 52-week period, shares are down 31.73%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. GW Pharmaceuticals is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: Earnings