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Preview: Alnylam Pharmaceuticals's Earnings

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On Thursday, February 11, Alnylam Pharmaceuticals (NASDAQ:ALNY) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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 covering Alnylam Pharmaceuticals have modeled for quarterly EPS loss of $1.76 on revenue of $146.07 million. In the same quarter last year, Alnylam Pharmaceuticals announced EPS of $1.98 on revenue of $71.68 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 11.11% increase in the company's earnings. Revenue would be up 103.78% 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 2020
EPS Estimate -1.66 -1.74 -1.89 -2.23
EPS Actual -1.58 -1.67 -1.52 -1.98
Revenue Estimate 120.75 M 99.48 M 91.56 M 72.00 M
Revenue Actual 125.85 M 103.96 M 99.48 M 71.68 M

Stock Performance

For a full 12 months, the return has risen by 31.59%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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

 

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Posted-In: BZI-EPEarnings