A Preview Of MiX Telematics's Earnings

On Thursday, May 27, MiX Telematics MIXT will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Analysts predict MiX Telematics will report earnings of $0.08 per share on revenue of $30.07 million. In the same quarter last year, MiX Telematics reported EPS of $0.13 on revenue of $36.24 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 38.46% decline in the company's earnings. Sales would have fallen 17.02% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Shares of MiX Telematics were trading at $13.86 as of May 24. Over the last 52-week period, shares are up 60.98%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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