Benzinga | Feb 8, 2021 10:05AM EST

A Preview Of CPSI's Earnings

CPSI (NASDAQ:CPSI) announces its next round of earnings this Tuesday, February 09. Here is Benzinga's look at CPSI's Q4 earnings report.

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

CPSI EPS is expected to be around $0.7, according to sell-side analysts. Sales will likely be near $69.33 million. In the same quarter last year, CPSI reported earnings per share of $0.78 on revenue of $70.64 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.

If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 10.26%. Revenue would be down 1.85% from the year-ago period. Here is how the CPSI's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.52 0.38 0.65 0.70EPS Actual 0.67 0.39 0.61 0.78Revenue Estimate 63.88 M 60.13 M 69.11 M 70.33 MRevenue Actual 68.33 M 59.55 M 69.76 M 70.64 M

Stock Performance

Shares of CPSI were trading at $32.35 as of February 05. Over the last 52-week period, shares are up 16.46%. 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. CPSI is scheduled to hold the call at 16:30:00 ET and can be accessed here.