Benzinga | Mar 24, 2021 10:06AM EDT

AstroNova's Earnings: A Preview



AstroNova (NASDAQ:ALOT) releases its next round of earnings this Thursday, March 25. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

Based on AstroNova management projections, analysts predict EPS of $0.04 on revenue of $29.19 million. In the same quarter last year, AstroNova posted a loss of $0.19 per share on sales of $30.48 million.

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

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 match the consensus estimate, earnings would be up 121.05%. Revenue would have fallen 4.23% from the same quarter last year. Here is how the AstroNova's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.02 -0.06 -0.19 0.03EPS Actual 0 0 0.06 -0.19Revenue Estimate 28.85 M 27.92 M 29.75 M 33.00 MRevenue Actual 28.02 M 27.66 M 30.92 M 30.48 M

Stock Performance

Shares of AstroNova were trading at $12.85 as of March 23. Over the last 52-week period, shares are up 41.46%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. AstroNova is scheduled to hold the call at 09:00:00 ET and can be accessed here.