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A Preview Of China Automotive Systems's Earnings

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China Automotive Systems (NASDAQ:CAAS) announces its next round of earnings this Tuesday, March 30. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

Net Income, Earnings, 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

China Automotive Systems EPS will likely be near $0.01 while revenue will be around $115.91 million, according to analysts. In the same quarter last year, China Automotive Systems reported EPS of $0.06 on revenue of $115.90 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.

If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 83.33%. Sales would be up 0.01% from the year-ago period. China Automotive Systems'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 0.01 -0.04 -0.09 0.04
EPS Actual 0.08 -0.13 0 0.06
Revenue Estimate 109.77 M 87.03 M 55.50 M 111.30 M
Revenue Actual 114.42 M 83.18 M 73.56 M 115.90 M

eps graph

Stock Performance

Shares of China Automotive Systems were trading at $4.87 as of March 26. Over the last 52-week period, shares are up 184.48%. 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. China Automotive Systems is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings