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Market Overview

Preview: Digi International's Earnings

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On Thursday, November 12, Digi International (NASDAQ: DGII) will release its latest earnings report. Benzinga's outlook for Digi International is included in the following report.

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 expect Digi International's EPS to be near $0.09 on sales of $72.04 million. Digi International reported a per-share profit of $0.18 when it published results during the same quarter last year. Sales in that period totaled $64.96 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 consensus estimate for earnings would represent a 50.0% decrease for the company. Revenue would be up 10.9% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.02 0.06 0.01 0.06
EPS Actual 0.23 0.28 0.15 0.18
Revenue Estimate 69.26 M 74.06 M 60.67 M 62.07 M
Revenue Actual 70.34 M 73.45 M 62.32 M 64.96 M

Stock Performance

Shares of Digi International were trading at $17.17 as of November 10. Over the last 52-week period, shares are up 13.31%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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

 

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Posted-In: Earnings