Market Overview

Earnings Outlook For GSE Systems

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On Monday, November 16, GSE Systems (NASDAQ: GVP) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts are expecting GSE Systems's loss per share to be near $0.06 on sales of $14.40 million. In the same quarter last year, GSE Systems reported EPS of $0.03 on revenue of $20.03 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 match the consensus estimate, earnings would be down 300.0%. Revenue would be down 28.11% on a year-over-year basis. The company'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 -0.03 -0.02 -0.01 0.03
EPS Actual -0.03 -0.04 0.06 0.03
Revenue Estimate 18.40 M 18.40 M 20.40 M 22.00 M
Revenue Actual 14.34 M 17.70 M 17.29 M 20.03 M

Stock Performance

Shares of GSE Systems were trading at $1.05 as of November 12. Over the last 52-week period, shares are down 14.17%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

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

 

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Posted-In: Earnings