Benzinga | Feb 2, 2021 10:11AM EST

Earnings Preview for FormFactor

FormFactor (NASDAQ:FORM) unveils its next round of earnings this Wednesday, February 03. Get prepared with Benzinga's ultimate preview for FormFactor's Q4 earnings.

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

FormFactor EPS will likely be near $0.39 while revenue will be around $183.95 million, according to analysts. In the same quarter last year, FormFactor announced EPS of $0.41 on revenue of $178.63 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 4.88% decrease in the company's earnings. Sales would be up 2.98% on a year-over-year basis. FormFactor's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.35 0.28 0.20 0.31EPS Actual 0.39 0.33 0.33 0.41Revenue Estimate 175.71 M 159.23 M 139.01 M 173.99 MRevenue Actual 178.00 M 157.82 M 160.75 M 178.63 M

Stock Performance

Shares of FormFactor were trading at $42.49 as of February 01. Over the last 52-week period, shares are up 62.32%. 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. FormFactor is scheduled to hold the call at 16:30:00 ET and can be accessed here.