Benzinga | Nov 24, 2020 10:07AM EST

Viomi Technology Co's Earnings: A Preview

Viomi Technology Co (NASDAQ: VIOT) announces its next round of earnings this Wednesday, November 25. Here is Benzinga's everything-that-matters guide for this Wednesday's Q3 earnings announcement.

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

Wall Street expects EPS of $0.13 and sales around $232.15 million. Viomi Technology Co reported a per-share profit of $0.14 when it published results during the same quarter last year. Sales in that period totaled $149.63 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 match the consensus estimate, earnings would be down 7.14%. Sales would be up 55.15% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.10 0.08 1.37 0.12EPS Actual 0.02 0.04 0.18 0.14Revenue Estimate 190.37 M 101.57 M 1.47 B 128.13 MRevenue Actual 238.41 M 108.11 M 250.17 M 149.63 M

Stock Performance

Over the past 52-week period, shares of Viomi Technology Co have declined 30.15%.

Do not be surprised to see the stock move on comments made during its conference call. Viomi Technology Co is scheduled to hold the call at 07:30:00 ET and can be accessed here.