Benzinga | May 4, 2021 10:35AM EDT

EyePoint Pharmaceuticals's Earnings Outlook

On Wednesday, May 05, EyePoint Pharmaceuticals (NASDAQ:EYPT) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Analysts covering EyePoint Pharmaceuticals have modeled for quarterly EPS loss of $0.46 on revenue of $7.93 million. EyePoint Pharmaceuticals's loss in the same period a year ago was $0.15 per share. Quarterly sales came in at $2.51 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 report earnings in line when it publishes results Wednesday, earnings would be down 206.67%. Revenue would be up 216.06% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.17 -0.05 -0.1 -0.10EPS Actual -1 -0.03 -0.1 -0.11Revenue Estimate 20.44 M 10.54 M 3.73 M 7.25 MRevenue Actual 7.13 M 15.70 M 4.12 M 7.49 M

Stock Performance

Shares of EyePoint Pharmaceuticals were trading at $10.62 as of May 03. Over the last 52-week period, shares are up 17.37%. 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. EyePoint Pharmaceuticals is scheduled to hold the call at 08:30:00 ET and can be accessed here.