Benzinga | Jul 26, 2021 10:47AM EDT

Earnings Preview: Transcat

On Tuesday, July 27, Transcat (NASDAQ:TRNS) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Transcat EPS is expected to be around $0.25, according to sell-side analysts. Sales will likely be near $44.42 million. In the same quarter last year, Transcat reported earnings per share of $0.11 on sales of $38.90 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 match the consensus estimate when it reports Tuesday, EPS would be up 127.27%. Revenue would be up 14.18% 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 0.32 0.19 0.17 -0.03EPS Actual 0.42 0.23 0.27 0.11Revenue Estimate 46.18 M 42.67 M 40.29 M 39.44 MRevenue Actual 48.76 M 44.06 M 41.61 M 38.90 M

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Transcat were trading at $61.35 as of July 23. Over the last 52-week period, shares are up 108.66%. 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. Transcat is scheduled to hold the call at 11:00:00 ET and can be accessed here.