Benzinga | Mar 23, 2021 10:09AM EDT

A Preview Of QAD's Earnings



On Wednesday, March 24, QAD (NASDAQ:QADA) will release its latest earnings report. Benzinga's outlook for QAD is included in the following report.

What Are Earnings, Net Income, 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

Analysts predict QAD will report earnings of $0.21 per share on revenue of $78.21 million. In the same quarter last year, QAD reported earnings per share of $0.02 on revenue of $78.55 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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 950.0%. Revenue would be down 0.44% 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 0.14 0.08 -0.06 0.12EPS Actual 0.16 0 -0.02 0.02Revenue Estimate 74.75 M 73.14 M 74.39 M 78.74 MRevenue Actual 76.66 M 74.08 M 74.15 M 78.55 M

Stock Performance

Shares of QAD were trading at $63.98 as of March 22. Over the last 52-week period, shares are up 66.75%. 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. QAD is scheduled to hold the call at 17:00:00 ET and can be accessed here.