Benzinga | Nov 17, 2020 10:12AM EST

Earnings Outlook For Edap TMS

Edap TMS (NASDAQ: EDAP) announces its next round of earnings this Wednesday, November 18. Here is Benzinga's everything-that-matters guide for this Wednesday's Q3 earnings announcement.

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

Sell-side analysts are expecting Edap TMS's loss per share to be near $0.02 on sales of $9.31 million. Edap TMS EPS in the same period a year ago totaled $0.03. Sales were $11.33 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 post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 166.67%. Revenue would be down 17.83% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.08 -0.03 0.03 0.04EPS Actual -0.01 -0.05 -0.04 0.03Revenue Estimate 6.72 M 9.16 M 13.99 M 12.94 MRevenue Actual 10.24 M 8.29 M 13.30 M 11.33 M

Stock Performance

Over the past 52-week period, shares of Edap TMS have declined 7.02%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Edap TMS is scheduled to hold the call at 08:30:00 ET and can be accessed here.