Benzinga | Mar 8, 2021 10:08AM EST

Aquestive Therapeutics Earnings Preview

Aquestive Therapeutics (NASDAQ:AQST) announces its next round of earnings this Tuesday, March 09. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

Net Income, Earnings, 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 are predicting Aquestive Therapeutics will report a loss of $0.26 per share on revenue of $6.24 million. Aquestive Therapeutics EPS in the same period a year ago totaled $0.48. Sales were $16.42 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

The Wall Street consensus estimate for earnings would represent a 45.83% increase for the company. Sales would be down 62.0% from the same quarter last year. Aquestive Therapeutics's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.46 -0.43 -0.47 -0.39EPS Actual -0.49 -0.07 -0.49 -0.48Revenue Estimate 8.72 M 8.77 M 10.07 M 15.84 MRevenue Actual 8.26 M 21.68 M 8.77 M 16.42 M

Stock Performance

Shares of Aquestive Therapeutics were trading at $4.41 as of March 05. Over the last 52-week period, shares are up 26.6%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

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