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Market Overview

Earnings Outlook For Reed's

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Earnings Outlook For Reed's

On Monday, May 17, Reed's (NASDAQ:REED) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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

Analysts are predicting Reed's will report a loss of $0.03 per share on revenue of $10.90 million. In the same quarter last year, Reed's announced EPS of $0.05 on revenue of $9.52 million.

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.

The Wall Street consensus estimate for earnings would represent a 40.0% increase for the company. Sales would be have grown 14.46% from the same quarter last year. 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 -0.04 -0.02 -0.04 -0.06
EPS Actual -0.04 -0.04 -0.03 -0.05
Revenue Estimate 9.26 M 10.36 M 9.80 M 8.66 M
Revenue Actual 10.68 M 10.56 M 10.85 M 9.52 M

eps graph

Stock Performance

Over the last 52-week period, shares are up 31.1%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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