Benzinga | May 3, 2021 10:14AM EDT

ESCO Technologies's Earnings Outlook

ESCO Technologies (NYSE:ESE) announces its next round of earnings this Tuesday, May 04. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 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

ESCO Technologies earnings will be near $0.55 per share on sales of $169.83 million, according to analysts. ESCO Technologies EPS in the same period a year ago totaled $0.68. Sales were $180.49 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.

The analyst consensus estimate would represent a 19.12% decline in the company's EPS figure. Revenue would be down 5.91% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.45 0.76 0.48 0.57EPS Actual 0.55 0.90 0.76 0.68Revenue Estimate 164.95 M 188.71 M 172.50 M 180.52 MRevenue Actual 162.95 M 208.03 M 172.66 M 180.49 M

Stock Performance

Shares of ESCO Technologies were trading at $108.61 as of April 29. Over the last 52-week period, shares are up 47.8%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. ESCO Technologies is scheduled to hold the call at 17:00:00 ET and can be accessed here.