Benzinga | Jan 26, 2021 10:31AM EST

PTC's Earnings Outlook

On Wednesday, January 27, PTC (NASDAQ:PTC) will release its latest earnings report. Benzinga's outlook for PTC is included in the following report.

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

PTC EPS is expected to be around $0.66, according to sell-side analysts. Sales will likely be near $382.33 million. In the same quarter last year, PTC announced EPS of $0.57 on revenue of $356.11 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 report earnings in line when it publishes results Wednesday, earnings would be up 15.79%. Revenue would be up 7.36% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.55 0.45 0.44 0.44EPS Actual 0.78 0.62 0.59 0.57Revenue Estimate 356.50 M 334.08 M 340.14 M 343.82 MRevenue Actual 390.98 M 351.72 M 359.60 M 356.11 M

Stock Performance

For a full 12 months, the return has risen by 55.55%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. PTC is scheduled to hold the call at 17:00:00 ET and can be accessed here.