Benzinga | May 17, 2021 10:08AM EDT

Agilysys Earnings Preview

Agilysys (NASDAQ:AGYS) announces its next round of earnings this Tuesday, May 18. Here is Benzinga's look at Agilysys's Q4 earnings report.

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

Agilysys EPS is expected to be around $0.15, according to sell-side analysts. Sales will likely be near $36.70 million. Agilysys EPS in the same period a year ago totaled $0.05. Revenue was $39.66 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 match the consensus estimate, earnings would be up 200.0%. Sales would be down 7.46% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q3 2021 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.21 0.11 -0.02 -0.05EPS Actual 0.23 0.29 0.08 0.29Revenue Estimate 36.09 M 34.28 M 25.82 M 39.83 MRevenue Actual 36.67 M 34.36 M 29.81 M 34.40 M

Stock Performance

Shares of Agilysys were trading at $48.05 as of May 14. Over the last 52-week period, shares are up 158.91%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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