Benzinga | Mar 3, 2021 10:41AM EST

PlayAGS's Earnings Outlook

On Thursday, March 04, PlayAGS (NYSE:AGS) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Analysts covering PlayAGS have modeled for quarterly EPS loss of $0.42 on revenue of $46.43 million. PlayAGS reported a per-share profit of $0.04 when it published results during the same quarter last year. Sales in that period totaled $77.79 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 1150.0%. Sales would have fallen 40.31% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.63 -1.08 -0.02 0.02EPS Actual -0.31 -1.11 -0.41 0.04Revenue Estimate 36.06 M 11.89 M 69.15 M 78.56 MRevenue Actual 49.28 M 16.79 M 54.31 M 77.79 M

Stock Performance

Over the last 52-week period, shares of PlayAGS are up 29.62%.

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