Benzinga | May 10, 2021 10:08AM EDT

Xenon Pharmaceuticals's Earnings Outlook

Xenon Pharmaceuticals (NASDAQ:XENE) announces its next round of earnings this Tuesday, May 11. Here is Benzinga's everything-that-matters guide for this Tuesday's Q1 earnings announcement.

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

Xenon Pharmaceuticals EPS loss is expected to be around $0.4, according to sell-side analysts. Sales will likely be near $5.15 million. In the same quarter last year, Xenon Pharmaceuticals announced EPS of $0.22 on revenue of $7.08 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 81.82% decline in the company's EPS figure. Revenue would be down 27.24% from the year-ago period. 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 -0.40 -0.15 -0.24 -0.32EPS Actual -0.34 -0.25 0 -0.22Revenue Estimate 3.22 M 10.06 M 6.90 M 4.50 MRevenue Actual 5.15 M 6.55 M 13.38 M 7.08 M

Stock Performance

Shares of Xenon Pharmaceuticals were trading at $18.51 as of May 07. Over the last 52-week period, shares are up 41.49%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Xenon Pharmaceuticals is scheduled to hold the call at 16:30:00 ET and can be accessed here.