Market Overview

Boingo Wireless's Earnings: A Preview

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Boingo Wireless (NASDAQ: WIFI) releases its next round of earnings this Monday, November 09. Here is Benzinga's essential guide to Boingo Wireless'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

Sell-side analysts are expecting Boingo Wireless's loss per share to be near $0.11 on sales of $59.37 million. The company saw a bottom-line number of $0.0 per share on sales of $64.71 million during the same period last year.

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

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.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 0%. Revenue would have fallen 8.25% from the same quarter last year. Here is how the Boingo Wireless's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.08 -0.07 -0.11 -0.1
EPS Actual -0.13 -0.10 -0.12 0
Revenue Estimate 61.08 M 63.31 M 69.74 M 62.79 M
Revenue Actual 58.67 M 59.89 M 64.06 M 64.71 M

Stock Performance

Shares of Boingo Wireless were trading at $9.85 as of November 05. Over the last 52-week period, shares are down 20.03%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

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

 

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Posted-In: Earnings