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Market Overview

Earnings Outlook for Cutera

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Cutera (NASDAQ: CUTR) announces its next round of earnings this Wednesday, November 04. Here is Benzinga's look at Cutera'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 are expecting Cutera to report a loss of $0.34 per share. Revenue will likely be around $34.21 million, according to the consensus estimate. In the same quarter last year, Cutera announced EPS of $0.15 on revenue of $46.12 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 Wall Street estimate would represent a 326.67% decline in the company's earnings. Revenue would be down 25.82% on a year-over-year basis. Here is how the Cutera'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 -0.24 0.09 0.06
EPS Actual -0.23 -0.60 0.14 0.15
Revenue Estimate 20.69 M 34.58 M 50.76 M 41.66 M
Revenue Actual 26.37 M 32.24 M 51.80 M 46.12 M

Stock Performance

Shares of Cutera were trading at $19.54 as of November 02. Over the last 52-week period, shares are down 39.04%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

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

 

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Posted-In: Earnings