Taro Pharmaceutical Indus TARO unveils its next round of earnings this Wednesday, May 19. Here is Benzinga's everything-that-matters guide for the earnings announcement.
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
Taro Pharmaceutical Indus EPS will likely be near $0.92 while revenue will be around $147.33, according to analysts. Taro Pharmaceutical Indus EPS in the same period a year ago totaled $1.42. Revenue was $174.94 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 Wednesday, quarterly profit would be down 35.21%. Revenue would be down 100.0% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
|Quarter||Q3 2021||Q2 2020||Q1 2020||Q4 2020|
|Revenue Estimate||152.63 M||125.34 M||158.35 M||168.24 M|
|Revenue Actual||140.15 M||142.84 M||117.63 M||174.94 M|
For a full 12 months, the return has risen by 8.38%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. Taro Pharmaceutical Indus is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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