Benzinga | Feb 10, 2021 10:43AM EST

Earnings Preview for Applied DNA Sciences

Applied DNA Sciences (NASDAQ:APDN) announces its next round of earnings this Thursday, February 11. Here is Benzinga's look at Applied DNA Sciences's Q1 earnings report.

Net Income, Earnings, 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 management's projections, Applied DNA Sciences analysts modeled for a loss of $0.54 per share on sales of $1.36 million. Applied DNA Sciences EPS in the same period a year ago totaled $1.12. Revenue was $633.52 thousand.

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, ithas posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would be up 51.79%. Revenue would be up 114.67% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.52 -0.67 -0.77 -1.24EPS Actual -0.82 -0.72 -0.79 -1.12Revenue Estimate 710.00 K 800.00 K 950.00 K 750.00 KRevenue Actual 314.00 K 431.52 K 552.47 K 633.52 K

Stock Performance

Shares of Applied DNA Sciences were trading at $10.3 as of February 09. Over the last 52-week period, shares are up 215.85%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Applied DNA Sciences is scheduled to hold the call at 16:30:00 ET and can be accessed here.