Benzinga | Nov 5, 2020 10:06AM EST

Earnings Outlook For Amphastar Pharmaceuticals

Amphastar Pharmaceuticals (NASDAQ: AMPH) releases its next round of earnings this Friday, November 06. Here is Benzinga's essential guide to Amphastar Pharmaceuticals's Q3 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

Amphastar Pharmaceuticals EPS is expected to be around $0.14, according to sell-side analysts. Sales will likely be near $91.26 million. Amphastar Pharmaceuticals EPS in the same period a year ago totaled $0.1. Sales were $80.14 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.

The Wall Street consensus estimate for earnings would represent a 40.0% increase for the company. Sales would be up 13.88% from the year-ago period. Here is how the Amphastar Pharmaceuticals's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.14 0.08 0.07 0.07EPS Actual 0.16 0.17 0.07 0.10Revenue Estimate 86.62 M 82.83 M 81.79 M 78.53 MRevenue Actual 85.81 M 84.69 M 83.38 M 80.14 M

Stock Performance

Shares of Amphastar Pharmaceuticals were trading at $20.74 as of November 04. Over the last 52-week period, shares are up 11.9%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Amphastar Pharmaceuticals is scheduled to hold the call at 12:00:00 ET and can be accessed here.