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Market Overview

Reed's Earnings Preview

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On Tuesday, March 30, Reed's (NASDAQ:REED) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Reed's EPS will likely be near $0.04 while revenue will be around $9.26 million, according to analysts. In the same quarter last year, Reed's posted a loss of $0.09 per share on sales of $7.15 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 match the consensus estimate when it reports Tuesday, EPS would be up 55.56%. Sales would be up 29.49% on a year-over-year basis. Reed's'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 -0.02 -0.04 -0.06 -0.08
EPS Actual -0.04 -0.03 -0.05 -0.09
Revenue Estimate 10.36 M 9.80 M 8.66 M 8.32 M
Revenue Actual 10.56 M 10.85 M 9.52 M 7.15 M

eps graph

Stock Performance

Shares of Reed's were trading at $1.12 as of March 26. Over the last 52-week period, shares are up 135.79%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

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

 

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Posted-In: BZI-EPEarnings