Benzinga | Apr 30, 2021 10:22AM EDT

Earnings Outlook for Harmonic

On Monday, May 03, Harmonic (NASDAQ:HLIT) will release its latest earnings report. Benzinga's outlook for Harmonic 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

Harmonic EPS will likely be near $0.03 while revenue will be around $102.21 million, according to analysts. Harmonic's loss in the same period a year ago was $0.1 per share. Quarterly sales came in at $78.42 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 when it reports Monday, earnings would be up 130.0%. Revenue would be up 30.34% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.15 -0.05 -0.13 -0.05EPS Actual 0.20 0.03 -0.06 -0.10Revenue Estimate 126.30 M 82.05 M 69.81 M 85.02 MRevenue Actual 131.53 M 94.89 M 73.99 M 78.42 M

Stock Performance

For a full 12 months, the return has risen by 42.7%. 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. Harmonic is scheduled to hold the call at 17:00:00 ET and can be accessed here.