Benzinga | Jun 7, 2021 10:04AM EDT

A Preview Of American Software's Earnings

Net Income, Earnings, 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

American Software earnings will be near $0.05 per share on sales of $28.70 million, according to analysts. American Software EPS in the same period a year ago totaled $0.02. Sales were $29.27 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 Tuesday, earnings would be up 150.0%. Revenue would be down 1.96% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q3 2021 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.04 0.04 0.04 0.04EPS Actual 0.09 0.02 0.06 0.02Revenue Estimate 27.91 M 27.93 M 28.52 M 28.40 MRevenue Actual 27.68 M 27.88 M 27.28 M 29.27 M

Stock Performance

Shares of American Software were trading at $19.43 as of June 04. Over the last 52-week period, shares are down 3.09%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. American Software is scheduled to hold the call at 17:00:00 ET and can be accessed here.