Penumbra's Earnings Outlook

Penumbra PEN 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 are predicting Penumbra will report a loss of $0.07 per share on revenue of $151.88 million. Penumbra EPS in the same period a year ago totaled $0.22. Revenue was $145.26 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.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 131.82%. Revenue would be up 4.56% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Shares of Penumbra were trading at $280.13 as of February 19. Over the last 52-week period, shares are up 57.51%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

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