Benzinga | Feb 22, 2021 10:06AM EST

Systemax Earnings Preview

Systemax (NYSE:SYX) will be releasing its next round of earnings this Tuesday, February 23. For all of the relevant information, here is your guide for Tuesday's Q4 earnings announcement.

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

Analysts predict Systemax will report earnings of $0.44 per share on revenue of $258.61 million. In the same quarter last year, Systemax reported EPS of $0.3 on revenue of $222.20 million.

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, 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 match the consensus estimate when it reports Tuesday, EPS would be up 46.67%. Sales would be have grown 16.39% 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 0.40 0.2 0.26 0.24EPS Actual 0.64 0.4 0.21 0.30Revenue Estimate 259.75 M 208.20 M 234.35 M 222.87 MRevenue Actual 285.70 M 242.10 M 227.30 M 222.20 M

Stock Performance

Shares of Systemax were trading at $44.27 as of February 19. Over the last 52-week period, shares are up 103.84%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

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