Benzinga | Nov 4, 2020 10:11AM EST

PlayAGS Earnings Preview

PlayAGS (NYSE: AGS) announces its next round of earnings this Thursday, November 05. Here is Benzinga's everything-that-matters guide for this Thursday's Q3 earnings announcement.

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

Based on PlayAGS management projections, analysts predict EPS of $0.63 on revenue of $36.06 million. In the same quarter last year, PlayAGS reported EPS of $0.16 on revenue of $79.38 million.

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 Thursday, earnings would be down 293.75%. Sales would have fallen 54.57% 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 -1.08 -0.02 0.02 0.02EPS Actual -1.11 -0.41 0.04 -0.16Revenue Estimate 11.89 M 69.15 M 78.56 M 78.38 MRevenue Actual 16.79 M 54.31 M 77.79 M 79.38 M

Stock Performance

Over the past 52-week period, shares of PlayAGS have declined 76.24%. 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. PlayAGS is scheduled to hold the call at 17:00:00 ET and can be accessed here.