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AXT's Earnings: A Preview

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AXT (NASDAQ:AXTI) announces its next round of earnings this Thursday, February 18. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 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

AXT EPS is expected to be around $0.02, according to sell-side analysts. Sales will likely be near $25.53 million. In the same quarter last year, AXT reported a loss per share of $0.05 on sales of $18.41 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 140.0% increase in the company's earnings. Revenue would be up 38.67% from the year-ago period. AXT's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.48 0.01 -0.01 -0.05 -0.07
EPS Actual -0.77 0.02 0.01 -0.01 -0.05
Revenue Estimate 900.96 M 24.07 M 21.68 M 19.46 M 20.01 M
Revenue Actual 1.25 B 25.47 M 22.13 M 20.72 M 18.41 M

Stock Performance

For a full 12 months, the return has risen by 208.0%. 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. AXT is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings