Market Overview

Preview: Biolase's Earnings


On Thursday, November 12, Biolase (NASDAQ: BIOL) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, 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 Biolase's loss per share to be near $0.05 on sales of $6.50 million. Biolase EPS in the same period a year ago totaled $0.25. Sales were $8.65 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.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 80.0%. Sales would be down 24.82% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.17 -0.14 -0.05 -0.13
EPS Actual -0.12 -0.19 -0.13 -0.25
Revenue Estimate 2.09 M 4.98 M 13.33 M 9.66 M
Revenue Actual 2.94 M 4.78 M 10.18 M 8.65 M

Stock Performance

Shares of Biolase were trading at $0.3036 as of November 10. Over the last 52-week period, shares are down 42.18%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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


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Posted-In: Earnings