MACOM Technology's Earnings Outlook

On Thursday, January 28, MACOM Technology MTSI will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, 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

MACOM Technology EPS is expected to be around $0.42, according to sell-side analysts. Sales will likely be near $148.02 million. In the same quarter last year, MACOM Technology reported EPS of $0.07 on revenue of $119.10 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 500.0%. Revenue would be up 24.29% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of MACOM Technology were trading at $59.9 as of January 26. Over the last 52-week period, shares are up 85.15%. 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. MACOM Technology is scheduled to hold the call at 08:30:00 ET and can be accessed here.