Preview: CRH Medical Corporation Common Shares of Beneficial Interest's Earnings

CRH Medical Corporation Common Shares of Beneficial Interest CRHM unveils its next round of earnings this Thursday, November 12. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Based on CRH Medical Corporation Common Shares of Beneficial Interest management projections, analysts predict EPS of $0.04 on revenue of $27.81 million. In the same quarter last year, CRH Medical Corporation Common Shares of Beneficial Interest posted EPS of $0.01 on sales of $30.41 million.

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.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 300.0%. Revenue would be down 8.56% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of CRH Medical Corporation Common Shares of Beneficial Interest were trading at $2.46 as of November 10. Over the last 52-week period, shares are down 21.09%. 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. CRH Medical Corporation Common Shares of Beneficial Interest is scheduled to hold the call at 08:30:00 ET and can be accessed here.