Benzinga | Jan 29, 2021 10:13AM EST

Tessco Technologies Earnings Preview

Tessco Technologies (NASDAQ:TESS) announces its next round of earnings this Monday, February 01. Here is Benzinga's everything-that-matters guide for this Monday's Q3 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 analysts see Tessco Technologies reporting a quarterly loss of $0.32 per share on sales of $102.10 million. Tessco Technologies earnings in the same period a year ago was $0.09 per share. Quarterly sales came in at $139.58 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.

If the company were to report earnings in line when it publishes results Monday, quarterly profit would be down 455.56%. Sales would be down 26.85% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020EPS Estimate -0.34 -0.59 -0.05 0.13EPS Actual -0.03 -0.54 -0.58 0.09Revenue Estimate 120.30 M 110.81 M 128.86 M 150.00 MRevenue Actual 119.66 M 119.81 M 128.18 M 139.58 M

Stock Performance

For a full 12 months, the return has risen by 12.05%. 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. Tessco Technologies is scheduled to hold the call at 08:30:00 ET and can be accessed here.