Benzinga | Nov 6, 2020 10:12AM EST

Preview: Clarus's Earnings

Clarus (NASDAQ: CLAR) announces its next round of earnings this Monday, November 09. Here is Benzinga's everything-that-matters guide for this Monday's Q3 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

Clarus earnings will be near $0.21 per share on sales of $63.57 million, according to analysts. In the same quarter last year, Clarus reported EPS of $0.19 on revenue of $60.20 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 post earnings in line with the consensus estimate when it reports Monday, EPS would be up 10.53%. Sales would be up 5.59% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.07 0.11 0.17 0.21EPS Actual -0.04 0.09 0.22 0.19Revenue Estimate 34.09 M 54.88 M 59.55 M 60.36 MRevenue Actual 30.01 M 53.55 M 61.02 M 60.20 M

Stock Performance

For a full 12 months, the return has risen by 43.53%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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