Benzinga | Jan 25, 2021 10:21AM EST

AudioCodes's Earnings: A Preview

AudioCodes (NASDAQ:AUDC) unveils its next round of earnings this Tuesday, January 26. Here is Benzinga's everything-that-matters guide for the 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

Analysts expect AudioCodes earnings of $0.37 per share. Revenue will likely be around $58.07 million, according to the consensus estimate. In the same quarter last year, AudioCodes reported earnings per share of $0.26 on sales of $52.80 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 Tuesday, earnings would be up 42.31%. Revenue would be up 9.99% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.31 0.27 0.23 0.24EPS Actual 0.38 0.32 0.25 0.26Revenue Estimate 55.63 M 52.90 M 50.85 M 51.90 MRevenue Actual 56.56 M 53.52 M 52.02 M 52.80 M

Stock Performance

Over the last 52-week period, shares of AudioCodes are up 38.03%.

Do not be surprised to see the stock move on comments made during its conference call. AudioCodes is scheduled to hold the call at 08:30:00 ET and can be accessed here.