A Preview Of Invacare's Earnings

On Wednesday, August 04, Invacare IVC will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Invacare's per-share loss will be near $-0.23 on sales of $214.60 million, according to Wall Street analysts. In the same quarter last year, Invacare announced EPS of $0.21 on revenue of $196.30 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 analyst consensus estimate would represent a 9.52% decline in the company's EPS figure. Sales would be up 9.32% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Invacare were trading at $7.02 as of August 02. Over the last 52-week period, shares are down 5.75%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Invacare is scheduled to hold the call at 08:30:00 ET and can be accessed here.