Benzinga | Feb 3, 2021 10:17AM EST

Preview: Net 1 UEPS Technologies's Earnings

Net 1 UEPS Technologies (NASDAQ:UEPS) unveils its next round of earnings this Thursday, February 04. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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

Wall Street analysts see Net 1 UEPS Technologies reporting a loss of $0.1 per share on revenue of $35.32 million. In the same quarter last year, Net 1 UEPS Technologies posted a loss of $0.1 per share on sales of $74.08 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 Wall Street consensus estimate for earnings would represent no change for the company. Sales would be down 52.32% from the year-ago period. 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 -0.08 -0.08 -0.10 -0.03EPS Actual -0.23 -0.22 -0.11 -0.10Revenue Estimate 25.98 M 32.16 M 46.66 M 72.34 MRevenue Actual 37.11 M 25.98 M 36.51 M 74.08 M

Stock Performance

Shares of Net 1 UEPS Technologies were trading at $5.56 as of February 02. Over the last 52-week period, shares are up 31.32%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Net 1 UEPS Technologies is scheduled to hold the call at 08:00:00 ET and can be accessed here.