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Market Overview

Earnings Preview for Recro Pharma

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Recro Pharma (NASDAQ:REPH) unveils its next round of earnings this Friday, February 26. Get prepared with Benzinga's ultimate preview for Recro Pharma's Q4 earnings.

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 Recro Pharma will report a loss of $0.25 per share on revenue of $15.00 million. Recro Pharma EPS in the same period a year ago totaled $0.38. Sales were $17.64 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.

If the company were to report earnings in line when it publishes results Friday, earnings would be up 34.21%. Sales would have fallen 14.98% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.20 -0.16 -0.03 -0.25
EPS Actual -0.09 -0.25 -0.33 -0.38
Revenue Estimate 16.33 M 18.88 M 19.45 M 19.55 M
Revenue Actual 19.29 M 15.52 M 21.78 M 17.64 M

Stock Performance

Shares of Recro Pharma were trading at $5.04 as of February 24. Over the last 52-week period, shares are down 65.34%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

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

 

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Posted-In: BZI-EPEarnings