Benzinga | Oct 26, 2020 10:18AM EDT

Omnicell Earnings Preview

On Tuesday, October 27, Omnicell (NASDAQ: OMCL) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Omnicell EPS is expected to be around $0.49, according to sell-side analysts. Sales will likely be near $208.46 million. In the same quarter last year, Omnicell reported EPS of $0.76 on revenue of $228.81 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.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be down 35.53%. Sales would have fallen 8.89% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.24 0.53 0.78 0.71EPS Actual 0.37 0.66 0.77 0.76Revenue Estimate 183.96 M 219.41 M 243.69 M 231.86 MRevenue Actual 199.62 M 229.69 M 248.29 M 228.81 M

Stock Performance

Over the last 52-week period, shares are up 15.08%. Given that these returns are generally positive, long-term shareholders can relax 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. Omnicell is scheduled to hold the call at 16:30:00 ET and can be accessed here.