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Market Overview

Nova Measuring Earnings Preview

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Nova Measuring (NASDAQ:NVMI) will be releasing its next round of earnings this Thursday, February 18. For all of the relevant information, here is your guide for Thursday's Q4 earnings announcement.

Net Income, Earnings, 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

Sell-side analysts expect Nova Measuring's EPS to be near $0.52 on sales of $69.90 million. Nova Measuring EPS in the same period a year ago totaled $0.51. Sales were $64.62 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 1.96% increase in the company's earnings. Revenue would be up 8.16% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.47 0.44 0.36 0.46
EPS Actual 0.57 0.48 0.47 0.51
Revenue Estimate 65.42 M 62.30 M 56.85 M 59.82 M
Revenue Actual 69.48 M 62.59 M 61.02 M 64.62 M

Stock Performance

For a full 12 months, the return has risen by 115.11%. 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. Nova Measuring is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings