Benzinga | Oct 29, 2020 10:03AM EDT

Earnings Outlook for ASE Technology Holding Co

ASE Technology Holding Co (NYSE: ASX) releases its next round of earnings this Friday, October 30. Here is Benzinga's essential guide to ASE Technology Holding Co's Q3 earnings report.

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

ASE Technology Holding Co earnings will be near $0.09 per share on sales of $4.03 billion, according to analysts. In the same quarter last year, ASE Technology Holding Co reported EPS of $0.09 on revenue of $3.77 billion.

Why Analyst Estimates And Earnings Surprises Are Important

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 Wall Street consensus estimate for earnings would represent no change for the company. Revenue would be up 6.87% on a year-over-year basis. ASE Technology Holding Co's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.08 0.05 0.08 0.06EPS Actual 0.11 0.06 0.10 0.09Revenue Estimate 3.47 B 3.25 B 3.71 B 3.60 BRevenue Actual 3.59 B 3.25 B 3.80 B 3.77 B

Stock Performance

Shares of ASE Technology Holding Co were trading at $4.27 as of October 28. Over the last 52-week period, shares are down 18.75%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. ASE Technology Holding Co is scheduled to hold the call at 02:00:00 ET and can be accessed here.