Benzinga | Feb 23, 2021 10:14AM EST

Earnings Outlook For American Software

On Wednesday, February 24, American Software (NASDAQ:AMSWA) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, 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 American Software reporting earnings of $0.04 per share on sales of $28.00 million. In the same quarter last year, American Software announced EPS of $0.1 on revenue of $30.60 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.

The Wall Street consensus estimate for earnings would represent a 60.0% decrease for the company. Sales would be down 8.5% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020EPS Estimate 0.04 0.04 0.04 0.04EPS Actual 0.02 0.06 0.02 0.10Revenue Estimate 27.93 M 28.52 M 28.40 M 27.89 MRevenue Actual 27.88 M 27.28 M 29.27 M 30.60 M

Stock Performance

Over the last 52-week period, shares are up 13.78%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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