Benzinga | Feb 8, 2021 10:21AM EST

A Preview Of Motorcar Parts of America's Earnings

Motorcar Parts of America (NASDAQ:MPAA) unveils its next round of earnings this Tuesday, February 09. Here is Benzinga's everything-that-matters guide for the 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

Wall Street expects EPS of $0.49 and sales around $140.07 million. In the same quarter last year, Motorcar Parts of America reported earnings per share of $0.28 on sales of $127.68 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 report earnings in line when it publishes results Tuesday, earnings would be up 75.0%. Sales would be up 9.71% from the same quarter last year. Motorcar Parts of America's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020EPS Estimate 0.46 -0.08 0.55 0.43EPS Actual 0.78 0.04 0.59 0.28Revenue Estimate 148.67 M 86.52 M 151.35 M 139.10 MRevenue Actual 154.73 M 95.36 M 150.74 M 127.68 M

Stock Performance

Over the last 52-week period, shares of Motorcar Parts of America are up 41.79%.

Do not be surprised to see the stock move on comments made during its conference call. Motorcar Parts of America is scheduled to hold the call at 13:00:00 ET and can be accessed here.