Earnings Outlook For Masimo

Masimo MASI will be releasing its next round of earnings this Tuesday, February 23. For all of the relevant information, here is your guide for Tuesday'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

Analysts predict Masimo will report earnings of $0.86 per share on revenue of $287.45 million. Masimo EPS in the same period a year ago totaled $0.91. Sales were $247.51 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 analyst consensus estimate would represent a 5.49% decline in the company's EPS figure. Sales would be up 16.14% from the year-ago period. Masimo's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Masimo were trading at $259.35 as of February 19. Over the last 52-week period, shares are up 50.19%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Masimo is scheduled to hold the call at 16:30:00 ET and can be accessed here.