Benzinga | Feb 17, 2021 10:13AM EST

Airgain Earnings Preview

Airgain (NASDAQ:AIRG) releases its next round of earnings this Thursday, February 18. Here is Benzinga's essential guide to Airgain's Q4 earnings report.

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

Airgain EPS is expected to be around $0.03, according to sell-side analysts. Sales will likely be near $12.78 million. In the same quarter last year, Airgain reported earnings per share of $0.07 on revenue of $13.03 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.

The analyst consensus estimate would represent a 57.14% decrease in the company's earnings. Revenue would be down 1.89% on a year-over-year basis. Here is how the Airgain's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.06 -0.08 -0.10 0.04EPS Actual 0.06 0.02 -0.05 0.07Revenue Estimate 12.76 M 11.18 M 11.00 M 13.26 MRevenue Actual 13.01 M 11.45 M 11.22 M 13.03 M

Stock Performance

Shares of Airgain were trading at $28 as of February 16. Over the last 52-week period, shares are up 194.62%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Airgain is scheduled to hold the call at 17:00:00 ET and can be accessed here.