Benzinga | Nov 2, 2020 10:19AM EST

Preview: Mercury Systems's Earnings

On Tuesday, November 03, Mercury Systems (NASDAQ: MRCY) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, 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

Analysts covering Mercury Systems modeled for quarterly EPS of $0.47 on revenue of $199.61 million. Mercury Systems EPS in the same period a year ago totaled $0.44. Sales were $177.30 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 analyst consensus estimate would represent a 6.82% increase in the company's earnings. Revenue would be up 12.58% from the year-ago period. Mercury Systems's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019EPS Estimate 0.57 0.52 0.48 0.41EPS Actual 0.72 0.60 0.54 0.44Revenue Estimate 212.65 M 199.05 M 192.53 M 168.02 MRevenue Actual 217.38 M 208.02 M 193.91 M 177.30 M

Stock Performance

Over the past 52-week period, shares of Mercury Systems have declined 2.88%.

Do not be surprised to see the stock move on comments made during its conference call. Mercury Systems is scheduled to hold the call at 17:00:00 ET and can be accessed here.