Benzinga | May 14, 2021 10:25AM EDT

A Preview Of China Online Education Gr's Earnings

China Online Education Gr (NYSE:COE) unveils its next round of earnings this Monday, May 17. Here is Benzinga's everything-that-matters guide for the 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

Based on management's projections, China Online Education Gr analysts model for earnings of $0.05 per share on sales of $93.15 million. China Online Education Gr EPS in the same period a year ago totaled $0.32. Revenue was $68.79 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.

If the company were to report earnings in line when it publishes results Monday, quarterly profit would be down 84.38%. Revenue would be up 35.41% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.09 0.08 0.11 0.06EPS Actual 0.21 0.02 0.20 0.32Revenue Estimate 81.07 M 79.18 M 67.54 M 63.40 MRevenue Actual 82.00 M 79.31 M 69.85 M 68.79 M

Stock Performance

Over the past 52-week period, shares of China Online Education Gr have declined 21.67%.

Do not be surprised to see the stock move on comments made during its conference call. China Online Education Gr is scheduled to hold the call at 08:00:00 ET and can be accessed here.