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Earnings Preview for Avanos Medical

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Avanos Medical (NYSE:AVNS) announces its next round of earnings this Friday, May 07. Here is Benzinga's look at Avanos Medical's Q1 earnings report.

Net Income, Earnings, 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, Avanos Medical analysts model for earnings of $0.18 per share on sales of $175.44 million. In the same quarter last year, Avanos Medical posted EPS of $0.16 on sales of $180.40 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 match the consensus estimate, earnings would be up 12.5%. Sales would be down 2.75% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.22 0.10 -0.10 0.16
EPS Actual 0.28 0.21 0.13 0.16
Revenue Estimate 184.15 M 165.87 M 147.90 M 175.22 M
Revenue Actual 185.00 M 185.70 M 163.70 M 180.40 M

eps graph

Stock Performance

Shares of Avanos Medical were trading at $42.6 as of May 05. Over the last 52-week period, shares are up 52.08%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Avanos Medical is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings