Benzinga | Feb 22, 2021 10:13AM EST

Tactile Systems Tech's Earnings Outlook

On Tuesday, February 23, Tactile Systems Tech (NASDAQ:TCMD) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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 expect Tactile Systems Tech earnings of $0.24 per share. Revenue will likely be around $58.22 million, according to the consensus estimate. Tactile Systems Tech EPS in the same period a year ago totaled $0.22. Revenue was $57.06 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 report earnings in line when it publishes results Tuesday, quarterly profit would be up 9.09%. Sales would be up 2.03% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.06 -0.22 -0.02 0.25EPS Actual 0.12 -0.51 -0.05 0.22Revenue Estimate 46.58 M 36.90 M 43.58 M 55.52 MRevenue Actual 49.09 M 35.10 M 43.67 M 57.06 M

Stock Performance

Shares of Tactile Systems Tech were trading at $60.32 as of February 19. Over the last 52-week period, shares are up 10.64%. 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. Tactile Systems Tech is scheduled to hold the call at 17:00:00 ET and can be accessed here.