Benzinga | Feb 24, 2021 10:21AM EST

A Preview Of ACM Research's Earnings

ACM Research (NASDAQ:ACMR) announces its next round of earnings this Thursday, February 25. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

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

Based on ACM Research management projections, analysts predict EPS of $0.27 on revenue of $42.15 million. In the same quarter last year, ACM Research reported EPS of $0.23 on revenue of $24.61 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 Thursday, quarterly profit would be up 17.39%. Revenue would be up 71.29% from the same quarter last year. ACM Research's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.37 0.19 0.04 0.09EPS Actual 0.42 0.29 0.11 0.23Revenue Estimate 45.47 M 31.32 M 19.77 M 22.99 MRevenue Actual 47.66 M 39.05 M 24.35 M 24.61 M

Stock Performance

For a full 12 months, the return has risen by 214.3%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. ACM Research is scheduled to hold the call at 08:00:00 ET and can be accessed here.