Benzinga | Feb 1, 2021 10:17AM EST

Earnings Outlook For Evoqua Water Technologies

Evoqua Water Technologies (NYSE:AQUA) releases its next round of earnings this Tuesday, February 02. Get the latest predictions in Benzinga's essential guide to the company's Q1 earnings 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

Based on management's projections, Evoqua Water Technologies analysts model for earnings of $0.03 per share on sales of $323.65 million. In the same quarter last year, Evoqua Water Technologies reported EPS of $0.04 on revenue of $346.11 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.

The analyst consensus estimate would represent a 25.0% decrease in the company's earnings. Revenue would have fallen 6.49% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.22 0.08 0.09 0.01EPS Actual 0.29 0.20 0.14 0.04Revenue Estimate 372.86 M 328.72 M 337.97 M 320.98 MRevenue Actual 383.86 M 347.83 M 351.66 M 346.11 M

Stock Performance

For a full 12 months, the return has risen by 14.37%. 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. Evoqua Water Technologies is scheduled to hold the call at 10:00:00 ET and can be accessed here.