Benzinga | Mar 9, 2021 10:25AM EST

Earnings Preview for AgroFresh Solutions

On Wednesday, March 10, AgroFresh Solutions (NASDAQ:AGFS) 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 expect AgroFresh Solutions earnings of $0.05 per share. Revenue will likely be around $54.89 million, according to the consensus estimate. In the same quarter last year, AgroFresh Solutions reported earnings per share of $0.09 on revenue of $60.97 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.

The analyst consensus estimate would represent a 44.44% decrease in the company's earnings. Sales would be down 9.97% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.08 -0.35 -0.15 0.14EPS Actual -0.33 -0.39 -0.08 0.09Revenue Estimate 59.51 M 21.19 M 40.22 M 61.24 MRevenue Actual 52.77 M 19.98 M 33.02 M 60.97 M

Stock Performance

Shares of AgroFresh Solutions were trading at $2.42 as of March 08. Over the last 52-week period, shares are up 36.78%. 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. AgroFresh Solutions is scheduled to hold the call at 16:30:00 ET and can be accessed here.