Infosys INFY unveils its next round of earnings this Wednesday, January 13. 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 Infosys management projections, analysts predict EPS of $0.15 on revenue of $3.38 billion. Infosys earnings in the same period a year ago was $0.15 per share. Quarterly sales came in at $3.24 billion.
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.
The analyst consensus estimate would represent 0% change in company's EPS figure. Sales would be up 4.22% on a year-over-year basis. Here is how the Infosys's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 2020 | Q1 2020 | Q4 2020 | Q3 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.14 | 0.12 | 0.14 | 0.14 |
| EPS Actual | 0.15 | 0.13 | 0.14 | 0.15 |
| Revenue Estimate | 3.24 B | 2.94 B | 3.25 B | 3.24 B |
| Revenue Actual | 3.31 B | 3.12 B | 3.20 B | 3.24 B |
Stock Performance
Shares of Infosys were trading at $18.76 as of January 11. Over the last 52-week period, shares are up 72.76%. 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. Infosys is scheduled to hold the call at 08:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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