Benzinga | Feb 8, 2021 10:20AM EST

A Preview Of Avaya Hldgs's Earnings

Avaya Hldgs (NYSE:AVYA) unveils its next round of earnings this Tuesday, February 09. Get prepared with Benzinga's ultimate preview for Avaya Hldgs's Q1 earnings.

Net Income, Earnings, 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 Avaya Hldgs management projections, analysts predict EPS of $0.95 on revenue of $723.73 million. In the same quarter last year, Avaya Hldgs posted EPS of $0.75 on sales of $715.00 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 report earnings in line when it publishes results Tuesday, earnings would be up 26.67%. Revenue would be up 1.22% from the same quarter last year. Here is how the Avaya Hldgs's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 1.20 0.79 0.53 0.74EPS Actual 0.39 0.61 0.88 0.75Revenue Estimate 733.55 M 686.74 M 624.20 M 710.75 MRevenue Actual 755.00 M 721.00 M 682.00 M 715.00 M

Stock Performance

Over the last 52-week period, shares of Avaya Hldgs are up 94.18%.

Do not be surprised to see the stock move on comments made during its conference call. Avaya Hldgs is scheduled to hold the call at 08:30:00 ET and can be accessed here.