Market Overview

Preview: Avaya Hldgs's Earnings

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On Wednesday, November 18, Avaya Hldgs (NYSE: AVYA) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Analysts predict Avaya Hldgs will report earnings of $1.2 per share on revenue of $733.55 million. Avaya Hldgs reported a per-share profit of $0.71 when it published results during the same quarter last year. Sales in that period totaled $723.00 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.

If the company were to match the consensus estimate, earnings would be up 69.01%. Revenue would be up 1.46% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.79 0.53 0.74 0.84
EPS Actual 0.61 0.88 0.75 0.71
Revenue Estimate 686.74 M 624.20 M 710.75 M 747.01 M
Revenue Actual 721.00 M 682.00 M 715.00 M 723.00 M

Stock Performance

Shares of Avaya Hldgs were trading at $18.795 as of November 16. Over the last 52-week period, shares are up 65.15%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Avaya Hldgs is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: Earnings