Benzinga | Nov 11, 2020 10:09AM EST

Earnings Outlook For CynergisTek, Inc. Common Stock

On Thursday, November 12, CynergisTek, Inc. Common Stock (AMEX: CTEK) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Analysts are predicting CynergisTek, Inc. Common Stock will report a loss of $0.14 per share on revenue of $4.63 million. In the same quarter last year, CynergisTek, Inc. Common Stock posted a loss of $0.04 per share on sales of $4.77 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 when it reports Thursday, earnings would be down 250.0%. Sales would have fallen 2.85% from the same quarter last year. CynergisTek, Inc. Common Stock's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.14 -0.09 -0.08 -0.05EPS Actual -0.20 -0.17 -0.17 -0.04Revenue Estimate 5.00 M 5.35 M 5.27 M 5.25 MRevenue Actual 4.56 M 5.12 M 5.77 M 4.77 M

Stock Performance

Over the last 52-week period, shares are down 49.48%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

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