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Market Overview

Earnings Outlook For China Automotive Systems

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China Automotive Systems (NASDAQ:CAAS) unveils its next round of earnings this Wednesday, May 12. Get prepared with Benzinga's ultimate preview for China Automotive Systems's Q1 earnings.

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

Wall Street analysts see China Automotive Systems reporting earnings of $0.03 per share on sales of $116.78 million. China Automotive Systems posted a break-even quarter on sales of $73.56 million in the same quarter last year.

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 Wednesday, earnings would be down 0%. Sales would be up 58.77% from the same quarter last year. 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 Q4 2020
EPS Estimate 0.01 0.01 -0.04 -0.09 0.04
EPS Actual 0.04 0.08 -0.13 0 0.06
Revenue Estimate 115.91 M 109.77 M 87.03 M 55.50 M 111.30 M
Revenue Actual 146.50 M 114.42 M 83.18 M 73.56 M 115.90 M

eps graph

Stock Performance

Shares of China Automotive Systems were trading at $4.1 as of May 10. Over the last 52-week period, shares are up 126.26%. 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