Benzinga | Mar 9, 2021 10:24AM EST

Establishment Labs Hldgs Earnings Preview

Establishment Labs Hldgs (NASDAQ:ESTA) announces its next round of earnings this Wednesday, March 10. Here is Benzinga's look at Establishment Labs Hldgs's Q4 earnings report.

Net Income, Earnings, 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

Sell-side analysts are expecting Establishment Labs Hldgs's loss per share to be near $0.19 on sales of $25.27 million. Establishment Labs Hldgs's loss in the same period a year ago was $0.27 per share. Quarterly sales came in at $24.25 million.

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

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 match the consensus estimate when it reports Wednesday, EPS would be up 29.63%. Revenue would be up 4.21% from the year-ago period. 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 -0.35 -0.45 -0.31 -0.58EPS Actual -0.18 -0.45 -0.79 -0.27Revenue Estimate 19.05 M 12.50 M 23.41 M 22.21 MRevenue Actual 22.76 M 10.47 M 24.48 M 24.25 M

Stock Performance

For a full 12 months, the return has risen by 307.62%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Establishment Labs Hldgs is scheduled to hold the call at 08:30:00 ET and can be accessed here.