Earnings Outlook for Invacare

On Wednesday, February 10, Invacare IVC will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Wall Street analysts see Invacare reporting a quarterly loss of $0.2 per share on sales of $215.58 million. Invacare EPS in the same period a year ago totaled $0.28. Sales were $232.91 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.

The Wall Street estimate would represent a 28.57% increase in the company's earnings. Revenue would have fallen 7.44% from the same quarter last year. Invacare's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Invacare were trading at $10.475 as of February 08. Over the last 52-week period, shares are up 15.67%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

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