Market Overview

Preview: Varex Imaging's Earnings

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Varex Imaging (NASDAQ: VREX) unveils its next round of earnings this Tuesday, November 17. Get prepared with Benzinga's ultimate preview for Varex Imaging's Q4 earnings.

What Are Earnings, Net Income, 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

Analysts are expecting Varex Imaging to report a loss of $0.1 per share. Revenue will likely be around $162.10 million, according to the consensus estimate. In the same quarter last year, Varex Imaging announced EPS of $0.46 on revenue of $202.40 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.

The analyst consensus estimate would represent a 121.74% decrease in the company's earnings. Sales would be down 19.91% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate -0.01 0.35 0.25 0.44
EPS Actual -0.20 0.12 0.21 0.46
Revenue Estimate 171.09 M 199.89 M 189.87 M 204.14 M
Revenue Actual 171.20 M 197.00 M 200.10 M 202.40 M

Stock Performance

Over the last 52-week period, shares are down 49.25%. 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. Varex Imaging is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings