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Market Overview

Earnings Preview: Data I/O


On Thursday, February 25, Data I/O (NASDAQ:DAIO) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, 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

Based on Data I/O management projections, analysts predict EPS of $0.05 on revenue of $5.60 million. In the same quarter last year, Data I/O reported a loss per share of $0.06 on sales of $5.87 million.

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

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 16.67% increase in the company's earnings. Sales would be down 4.57% 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 -0.07 -0.09 -0.16 -0.13
EPS Actual -0.09 -0.13 -0.07 -0.06
Revenue Estimate 4.90 M 4.40 M 4.40 M 4.10 M
Revenue Actual 5.95 M 4.66 M 4.79 M 5.87 M

Stock Performance

For a full 12 months, the return has risen by 67.96%. 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. Data I/O is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings