Benzinga | Feb 17, 2021 10:30AM EST

Earnings Outlook for Casa Systems

Casa Systems (NASDAQ:CASA) releases its next round of earnings this Thursday, February 18. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

Wall Street analysts see Casa Systems reporting earnings of $0.11 per share on revenue of $107.49 million. Casa Systems reported a profit of $0.15 per share when it published results during the same quarter last year. Sales in that period totaled $112.89 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 Wall Street consensus estimate for earnings would represent a 26.67% decrease for the company. Sales would have fallen 4.79% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.04 -0.03 -0.05 -0.01EPS Actual 0.07 0.01 -0.07 0.15Revenue Estimate 91.46 M 76.09 M 72.13 M 103.71 MRevenue Actual 105.75 M 83.35 M 83.62 M 112.89 M

Stock Performance

Over the last 52-week period, shares are up 91.21%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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