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Market Overview

Preview: Hollysys Automation's Earnings

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Hollysys Automation (NASDAQ:HOLI) will be releasing its next round of earnings this Thursday, March 04. For all of the relevant information, here is your guide for Thursday's Q2 earnings announcement.

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 management's projections, Hollysys Automation analysts model for earnings of $0.49 per share on sales of $181.46 million. In the same quarter last year, Hollysys Automation announced EPS of $0.56 on revenue of $170.11 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 consensus estimate for earnings would represent a 12.5% decrease for the company. Sales would be have grown 6.67% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.45 0.38 0.36 0.60
EPS Actual 0.34 0.04 0.23 0.56
Revenue Estimate 138.11 M 147.75 M 115.42 M 156.93 M
Revenue Actual 129.47 M 129.22 M 80.77 M 170.11 M

Stock Performance

Shares of Hollysys Automation were trading at $15.42 as of March 02. Over the last 52-week period, shares are up 6.85%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hollysys Automation is scheduled to hold the call at 20:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings