Benzinga | Feb 8, 2021 10:07AM EST

Earnings Preview for II-VI

On Tuesday, February 09, II-VI (NASDAQ:IIVI) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Based on management's projections, II-VI analysts model for earnings of $0.9 per share on sales of $767.54 million. In the same quarter last year, II-VI reported earnings per share of $0.36 on sales of $666.33 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.

The analyst consensus estimate would represent a 150.0% increase in the company's earnings. Sales would be up 15.19% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.55 0.76 0.14 0.36EPS Actual 0.84 1.18 0.47 0.36Revenue Estimate 730.51 M 712.34 M 575.36 M 610.28 MRevenue Actual 728.08 M 746.29 M 627.04 M 666.33 M

Stock Performance

Over the last 52-week period, shares are up 138.4%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. II-VI is scheduled to hold the call at 09:00:00 ET and can be accessed here.