Benzinga | Feb 22, 2021 10:20AM EST

Sykes Enterprises's Earnings Outlook

Sykes Enterprises (NASDAQ:SYKE) 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 expect Sykes Enterprises earnings of $0.78 per share. Revenue will likely be around $442.00 million, according to the consensus estimate. Sykes Enterprises EPS in the same period a year ago totaled $0.69. Revenue was $425.28 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.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 13.04%. Sales would be up 3.93% from the same quarter last year. 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 0.55 0.29 0.48 0.66EPS Actual 0.76 0.71 0.44 0.69Revenue Estimate 415.67 M 378.30 M 415.45 M 417.37 MRevenue Actual 431.73 M 416.83 M 411.17 M 425.28 M

Stock Performance

Shares of Sykes Enterprises were trading at $41.93 as of February 19. Over the last 52-week period, shares are up 24.3%. 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. Sykes Enterprises is scheduled to hold the call at 10:00:00 ET and can be accessed here.