Benzinga | Dec 7, 2020 10:08AM EST

Earnings Outlook For AeroVironment

AeroVironment (NASDAQ:AVAV) announces its next round of earnings this Tuesday, December 08. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 earnings announcement.

What Are Earnings, Net Income, 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

Wall Street expects EPS of $0.31 and sales around $81.76 million. AeroVironment earnings in the same period a year ago was $0.34 per share. Quarterly sales came in at $83.27 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.

The analyst consensus estimate would represent a 8.82% decrease in the company's earnings. Sales would be down 1.81% from the same quarter last year. Here is how the AeroVironment's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019EPS Estimate 0.40 0.70 0.13 0.29EPS Actual 0.44 0.75 -0.01 0.34Revenue Estimate 80.48 M 123.62 M 68.81 M 81.01 MRevenue Actual 87.45 M 135.22 M 61.89 M 83.27 M

Stock Performance

Over the last 52-week period, shares of AeroVironment are up 49.76%.

Do not be surprised to see the stock move on comments made during its conference call. AeroVironment is scheduled to hold the call at 16:30:00 ET and can be accessed here.