Benzinga | Feb 3, 2021 10:06AM EST

Preview: Charles & Colvard's Earnings

Charles & Colvard (NASDAQ:CTHR) unveils its next round of earnings this Thursday, February 04. Here is Benzinga's everything-that-matters guide for the 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

Charles & Colvard earnings will be near $0.03 per share on sales of $11.30 million, according to analysts. In the same quarter last year, Charles & Colvard announced EPS of $0.03 on revenue of $10.66 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 no change in the company's earnings. Revenue would be up 6.01% from the year-ago period. Here is how the Charles & Colvard's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate -0.03 -0.07 -0.02 0.04EPS Actual 0.03 -0.04 -0.21 0.03Revenue Estimate 5.70 M 2.60 M 6.00 M 11.70 MRevenue Actual 7.93 M 4.43 M 6.49 M 10.66 M

Stock Performance

Shares of Charles & Colvard were trading at $2.1 as of February 02. Over the last 52-week period, shares are up 50.16%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Charles & Colvard is scheduled to hold the call at 16:30:00 ET and can be accessed here.