Infosys INFY releases its next round of earnings this Wednesday, July 14. Here is Benzinga's essential guide to Infosys's Q1 earnings report.
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
Infosys earnings will be near $0.17 per share on sales of $3.69 billion, according to analysts. In the same quarter last year, Infosys announced EPS of $0.13 on revenue of $3.12 billion.
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 match the consensus estimate when it reports Wednesday, EPS would be up 30.77%. Sales would be up 18.23% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 |
|---|---|---|---|---|
| EPS Estimate | 0.16 | 0.15 | 0.14 | 0.12 |
| EPS Actual | 0.16 | 0.17 | 0.15 | 0.13 |
| Revenue Estimate | 3.56 B | 3.38 B | 3.24 B | 2.94 B |
| Revenue Actual | 3.61 B | 3.52 B | 3.31 B | 3.12 B |
Stock Performance
Shares of Infosys were trading at $21.05 as of July 12. Over the last 52-week period, shares are up 75.9%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Infosys is scheduled to hold the call at 08:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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