A Preview Of OneSpan's Earnings

On Tuesday, February 23, OneSpan OSPN will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Based on management's projections, OneSpan analysts model for earnings of $0.01 per share on sales of $42.42 million. OneSpan reported a profit of $0.24 per share when it published results during the same quarter last year. Sales in that period totaled $71.00 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 analyst consensus estimate would represent a 95.83% decrease in the company's earnings. Sales would be down 40.26% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of OneSpan were trading at $25.84 as of February 19. Over the last 52-week period, shares are up 51.48%. 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. OneSpan is scheduled to hold the call at 16:30:00 ET and can be accessed here.