Benzinga | Feb 9, 2021 10:32AM EST

Earnings Preview: Advanced Energy Indus

n Wednesday, February 10, Advanced Energy Indus (NASDAQ:AEIS) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Based on Advanced Energy Indus management projections, analysts predict EPS of $1.35 on revenue of $364.66 million. In the same quarter last year, Advanced Energy Indus posted EPS of $0.87 on sales of $338.27 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.

If the company were to match the consensus estimate, earnings would be up 55.17%. Sales would be have grown 7.8% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.16 0.81 0.65 0.69EPS Actual 1.66 1.18 0.91 0.87Revenue Estimate 350.61 M 318.21 M 307.47 M 310.58 MRevenue Actual 389.52 M 339.88 M 315.46 M 338.27 M

Stock Performance

Over the last 52-week period, shares are up 48.97%. 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. Advanced Energy Indus is scheduled to hold the call at 08:30:00 ET and can be accessed here.