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Market Overview

Perspecta's Earnings Outlook

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On Tuesday, November 10, Perspecta (NYSE: PRSP) will release its latest earnings report. Benzinga's outlook for Perspecta is included in the following 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

Perspecta EPS is expected to be around $0.5, according to sell-side analysts. Sales will likely be near $1.11 billion. In the same quarter last year, Perspecta reported EPS of $0.54 on revenue of $1.17 billion.

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.

The analyst consensus estimate would represent a 7.41% decrease in the company's earnings. Revenue would be down 5.29% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate 0.45 0.51 0.54 0.51
EPS Actual 0.47 0.55 0.55 0.54
Revenue Estimate 1.07 B 1.07 B 1.11 B 1.11 B
Revenue Actual 1.11 B 1.10 B 1.13 B 1.17 B

Stock Performance

Shares of Perspecta were trading at $19.6 as of November 06. Over the last 52-week period, shares are down 25.91%. 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. Perspecta is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings