Benzinga | Feb 26, 2021 10:18AM EST

A Preview Of Travere Therapeutics's Earnings

Travere Therapeutics (NASDAQ:TVTX) unveils its next round of earnings this Monday, March 01. Get prepared with Benzinga's ultimate preview for Travere Therapeutics's Q4 earnings.

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

Analysts are predicting Travere Therapeutics will report a loss of $0.47 per share on revenue of $51.66 million. Travere Therapeutics reported a loss of $0.7 when it published results during the same quarter last year. Sales in that period totaled $46.69 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 report earnings in line when it publishes results Monday, earnings would be up 32.86%. Sales would be up 10.65% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.51 -0.55 -0.67 -0.64EPS Actual -0.11 -0.22 -0.20 -0.70Revenue Estimate 48.14 M 47.08 M 43.43 M 46.02 MRevenue Actual 51.14 M 48.43 M 47.77 M 46.69 M

Stock Performance

Shares of Travere Therapeutics were trading at $29.7 as of February 25. Over the last 52-week period, shares are up 92.38%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Travere Therapeutics is scheduled to hold the call at 16:30:00 ET and can be accessed here.