Benzinga | Jan 12, 2021 10:05AM EST

Wipro Earnings Preview

Wipro (NYSE:WIT) announces its next round of earnings this Wednesday, January 13. Here is Benzinga's everything-that-matters guide for this Wednesday'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

Analysts predict Wipro will report earnings of $0.06 per share on revenue of $2.13 billion. In the same quarter last year, Wipro reported earnings per share of $0.06 on sales of $2.17 billion.

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 0% change in company's EPS figure. Revenue would have fallen 1.75% from the same quarter last year. Here is how the Wipro's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020EPS Estimate 0.06 0.05 0.06 0.06EPS Actual 0.06 0.06 0.05 0.06Revenue Estimate 2.05 B 1.86 B 2.15 B 2.20 BRevenue Actual 2.06 B 1.97 B 2.08 B 2.17 B

Stock Performance

Shares of Wipro were trading at $6.38 as of January 11. Over the last 52-week period, shares are up 73.54%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Wipro is scheduled to hold the call at 09:15:00 ET and can be accessed here.