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Market Overview

Preview: OrthoPediatrics's Earnings


OrthoPediatrics (NASDAQ:KIDS) will be releasing its next round of earnings this Wednesday, March 10. For all of the relevant information, here is your guide for Wednesday's Q4 earnings announcement.

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, OrthoPediatrics analysts modeled for a loss of $0.27 per share on sales of $20.31 million. In the same quarter last year, OrthoPediatrics reported EPS of $0.29 on revenue of $18.95 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.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 6.9%. Revenue would be up 7.17% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.31 -0.38 -0.25 -0.25
EPS Actual -0.24 -0.54 -0.30 -0.29
Revenue Estimate 19.97 M 11.43 M 17.04 M 18.40 M
Revenue Actual 22.20 M 13.59 M 16.36 M 18.95 M

Stock Performance

For a full 12 months, the return has risen by 23.67%. 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. OrthoPediatrics is scheduled to hold the call at 08:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings