Market Overview

Preview: Coherent's Earnings

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On Tuesday, November 10, Coherent (NASDAQ:COHR) 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 predict Coherent will report earnings of $0.8 per share on revenue of $309.64 million. In the same quarter last year, Coherent reported earnings per share of $0.89 on sales of $335.46 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 10.11% decline in the company's earnings. Sales would be down 7.7% on a year-over-year basis. Coherent's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.21 0.52 0.77 0.98
EPS Actual 0.52 0.61 0.86 0.89
Revenue Estimate 287.69 M 306.08 M 318.23 M 330.02 M
Revenue Actual 298.33 M 293.15 M 320.77 M 335.46 M

Stock Performance

Shares of Coherent were trading at $135.91 as of November 06. Over the last 52-week period, shares are down 6.76%. 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. Coherent is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings