Market Overview

Earnings Outlook for Synacor

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On Wednesday, November 11, Synacor (NASDAQ: SYNC) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Wall Street expects an EPS loss of $0.07 and sales around $20.34 million. Synacor EPS in the same period a year ago totaled $0.03. Revenue was $31.37 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.

The Wall Street estimate would represent a 133.33% decline in the company's earnings. Sales would have fallen 35.15% from the same quarter last year. Synacor's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.09 -0.10 -0.04 -0.07
EPS Actual -0.07 -0.08 0 -0.03
Revenue Estimate 18.50 M 22.45 M 26.37 M 29.38 M
Revenue Actual 18.18 M 20.58 M 26.81 M 31.37 M

Stock Performance

Over the last 52-week period, shares are down 16.88%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Synacor is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings