Benzinga | May 7, 2021 10:09AM EDT

Earnings Outlook For StarTek

StarTek (NYSE:SRT) announces its next round of earnings this Monday, May 10. Here is Benzinga's everything-that-matters guide for this Monday's Q1 earnings announcement.

Net Income, Earnings, 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 StarTek will report earnings of $0.09 per share on revenue of $164.55 million. In the same quarter last year, StarTek posted a loss of $0.02 per share on sales of $160.90 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 Wall Street consensus estimate for earnings would represent a 550.0% increase for the company. Revenue would be up 2.27% 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 0.10 -0.01 -0.13 0.03EPS Actual 0.22 0.08 -0.07 -0.02Revenue Estimate 169.63 M 152.00 M 131.50 M 164.53 MRevenue Actual 174.47 M 162.69 M 142.17 M 160.90 M

Stock Performance

For a full 12 months, the return has risen by 120.34%. 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. StarTek is scheduled to hold the call at 17:00:00 ET and can be accessed here.