Benzinga | Feb 3, 2021 10:13AM EST

Benchmark Electronics's Earnings: A Preview

Benchmark Electronics (NYSE:BHE) announces its next round of earnings this Thursday, February 04. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 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

Benchmark Electronics EPS will likely be near $0.33 while revenue will be around $521.33 million, according to analysts. Benchmark Electronics earnings in the same period a year ago was $0.27 per share. Quarterly sales came in at $508.44 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 22.22%. Sales would be up 2.53% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.28 0.09 0.16 0.29EPS Actual 0.32 0.07 0.22 0.27Revenue Estimate 511.33 M 474.33 M 510.00 M 519.33 MRevenue Actual 525.95 M 490.97 M 514.96 M 508.44 M

Stock Performance

Shares of Benchmark Electronics were trading at $27.05 as of February 02. Over the last 52-week period, shares are down 10.42%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Benchmark Electronics is scheduled to hold the call at 17:00:00 ET and can be accessed here.