Benzinga | Jul 14, 2021 10:08AM EDT

Earnings Preview: Wipro

Wipro (NYSE:WIT) releases its next round of earnings this Thursday, July 15. Get the latest predictions in Benzinga's essential guide to the company's Q1 earnings report.

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

Based on Wipro management projections, analysts predict EPS of $0.07 on revenue of $2.31 billion. In the same quarter last year, Wipro reported EPS of $0.06 on revenue of $1.97 billion.

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 match the consensus estimate when it reports Thursday, earnings would be up 16.67%. Sales would be up 17.02% 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 2021 Q2 2021 Q1 2021EPS Estimate 0.07 0.06 0.06 0.05EPS Actual 0.07 0.07 0.06 0.06Revenue Estimate 2.17 B 2.13 B 2.05 B 1.86 BRevenue Actual 2.22 B 2.15 B 2.06 B 1.97 B

Stock Performance

Shares of Wipro were trading at $7.53 as of July 13. Over the last 52-week period, shares are up 111.32%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Wipro is scheduled to hold the call at 09:45:00 ET and can be accessed here.