Benzinga | Oct 30, 2020 11:05AM EDT

Addus HomeCare's Earnings Outlook

On Monday, November 02, Addus HomeCare (NASDAQ: ADUS) will release its latest earnings report. Here is Benzinga's outlook for the company.

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 Addus HomeCare will report earnings of $0.65 per share on revenue of $189.16 million. Addus HomeCare reported a profit of $0.62 per share when it published results during the same quarter last year. Sales in that period totaled $169.80 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.

If the company were to match the consensus estimate, earnings would be up 4.84%. Sales would be up 11.4% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.49 0.70 0.66 0.58EPS Actual 0.73 0.77 0.73 0.62Revenue Estimate 173.01 M 187.31 M 182.91 160.57 MRevenue Actual 184.58 M 190.20 M 192.40 M 169.80 M

Stock Performance

For a full 12 months, the return has risen by 15.45%. 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. Addus HomeCare is scheduled to hold the call at 09:00:00 ET and can be accessed here.