Benzinga | Feb 25, 2021 10:04AM EST

A Preview Of Amneal Pharmaceuticals's Earnings

On Friday, February 26, Amneal Pharmaceuticals (NYSE:AMRX) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, 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

Based on Amneal Pharmaceuticals management projections, analysts predict EPS of $0.13 on revenue of $507.02 million. Amneal Pharmaceuticals earnings in the same period a year ago was $0.08 per share. Quarterly sales came in at $397.33 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 match the consensus estimate when it reports Friday, earnings would be up 62.5%. Revenue would be up 27.61% from the year-ago period. Here is how the Amneal Pharmaceuticals's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.12 0.10 0.09 0.05EPS Actual 0.16 0.13 0.20 0.08Revenue Estimate 482.11 M 458.44 M 444.23 M 394.78 MRevenue Actual 519.29 M 464.66 M 498.53 M 397.33 M

Stock Performance

Shares of Amneal Pharmaceuticals were trading at $5.095 as of February 24. Over the last 52-week period, shares are up 32.99%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Amneal Pharmaceuticals is scheduled to hold the call at 08:30:00 ET and can be accessed here.