Benzinga | Mar 9, 2021 10:21AM EST

Allied Motion's Earnings: A Preview

On Wednesday, March 10, Allied Motion (NASDAQ:AMOT) 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

Wall Street analysts see Allied Motion reporting earnings of $0.26 per share on sales of $87.94 million. Allied Motion EPS in the same period a year ago totaled $0.37. Sales were $87.92 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 29.73% decrease in the company's earnings. Revenue would be up 0.02% from the year-ago period. Here is how the Allied Motion's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.28 0.05 0.26 0.29EPS Actual 0.42 0.32 0.44 0.37Revenue Estimate 89.96 M 80.74 M 87.91 M 87.32 MRevenue Actual 94.65 M 86.66 M 92.38 M 87.92 M

Stock Performance

Over the last 52-week period, shares of Allied Motion are up 47.83%.

Do not be surprised to see the stock move on comments made during its conference call. Allied Motion is scheduled to hold the call at 10:00:00 ET and can be accessed here.