Benzinga | Mar 10, 2021 10:04AM EST

Preview: Ocular Therapeutix's Earnings

Ocular Therapeutix (NASDAQ:OCUL) will be releasing its next round of earnings this Thursday, March 11. For all of the relevant information, here is your guide for Thursday's Q4 earnings announcement.

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

Ocular Therapeutix EPS will likely be near $0.17 while revenue will be around $9.76 million, according to analysts. In the same quarter last year, Ocular Therapeutix posted EPS of $0.53 on sales of $2.26 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 report earnings in line when it publishes results Thursday, quarterly profit would be up 67.92%. Sales would be have grown 332.62% from the same quarter last year. Here is how the Ocular Therapeutix's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.24 -0.31 -0.37 -0.45EPS Actual -0.21 -0.64 -0.41 -0.53Revenue Estimate 5.49 M 1.50 M 2.84 M 2.54 MRevenue Actual 5.88 M 1.57 M 2.61 M 2.26 M

Stock Performance

Over the last 52-week period, shares are up 370.63%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ocular Therapeutix is scheduled to hold the call at 16:30:00 ET and can be accessed here.