Benzinga | Feb 1, 2021 10:07AM EST

Earnings Preview: Catalent

On Tuesday, February 02, Catalent (NYSE:CTLT) will release its latest earnings report. Benzinga's outlook for Catalent is included in the following report.

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 Catalent earnings of $0.55 per share. Revenue will likely be around $894.58 million, according to the consensus estimate. In the same quarter last year, Catalent reported EPS of $0.45 on revenue of $721.40 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 22.22%. Sales would be have grown 24.01% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.37 0.79 0.48 0.44EPS Actual 0.43 0.90 0.50 0.45Revenue Estimate 811.37 M 895.51 M 692.54 M 699.51 MRevenue Actual 845.70 M 947.60 M 760.60 M 721.40 M

Stock Performance

Shares of Catalent were trading at $115.11 as of January 29. Over the last 52-week period, shares are up 98.77%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Catalent is scheduled to hold the call at 08:15:00 ET and can be accessed here.