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Market Overview

Earnings Preview for Recro Pharma

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On Thursday, May 06, Recro Pharma (NASDAQ:REPH) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Wall Street analysts see Recro Pharma reporting a quarterly loss of $0.25 per share on sales of $16.43 million. In the same quarter last year, Recro Pharma reported EPS of $0.33 on revenue of $21.78 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 Thursday, earnings would be up 24.24%. Revenue would be down 24.55% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate -0.25 -0.20 -0.16 -0.03
EPS Actual -0.48 -0.09 -0.25 -0.33
Revenue Estimate 15.00 M 16.33 M 18.88 M 19.45 M
Revenue Actual 9.91 M 19.29 M 15.52 M 21.78 M

eps graph

Stock Performance

Shares of Recro Pharma were trading at $2.59 as of May 04. Over the last 52-week period, shares are down 69.53%. Given that these returns are generally negative, long-term shareholders are probably a little 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