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Radius Health's Earnings: A Preview

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Radius Health (NASDAQ:RDUS) announces its next round of earnings this Friday, May 07. Here is Benzinga's everything-that-matters guide for this Friday's Q1 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

Sell-side analysts are expecting Radius Health's loss per share to be near $0.41 on sales of $60.38 million. Radius Health reported a per-share loss of $0.59 when it published results during the same quarter last year. Sales in that period totaled $47.92 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 Friday, earnings would be up 30.51%. Sales would be up 25.99% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate -0.42 -0.21 -0.74 -0.69
EPS Actual -0.23 0.15 -0.67 -0.59
Revenue Estimate 59.86 M 78.38 M 48.40 M 46.26 M
Revenue Actual 62.78 M 77.83 M 50.11 M 47.92 M

eps graph

Stock Performance

Over the last 52-week period, shares are up 42.48%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Radius Health is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings