Benzinga | Jan 28, 2021 10:08AM EST

Earnings Outlook For Gentex

Gentex (NASDAQ:GNTX) announces its next round of earnings this Friday, January 29. Here is Benzinga's everything-that-matters guide for this Friday's Q4 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 $0.5 and sales around $483.16 million. In the same quarter last year, Gentex reported earnings per share of $0.39 on revenue of $443.84 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 a 28.21% increase in the company's EPS figure. Sales would be up 8.86% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.40 0.13 0.36 0.38EPS Actual 0.48 0.02 0.36 0.39Revenue Estimate 451.25 M 268.53 M 438.66 M 446.47 MRevenue Actual 474.64 M 229.93 M 453.76 M 443.84 M

Stock Performance

Shares of Gentex were trading at $33.04 as of January 27. Over the last 52-week period, shares are up 11.39%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Gentex is scheduled to hold the call at 09:30:00 ET and can be accessed here.