Benzinga | Nov 6, 2020 10:17AM EST

Earnings Preview: Gaia

Gaia (NASDAQ: GAIA) will be releasing its next round of earnings this Monday, November 09. For all of the relevant information, here is your guide for Monday's Q3 earnings announcement.

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

Wall Street analysts see Gaia reporting a loss of $0.04 per share on revenue of $17.03 million. Gaia reported a loss of $0.23 when it published results during the same quarter last year. Sales in that period totaled $13.66 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 match the consensus estimate when it reports Monday, earnings would be up 82.61%. Sales would be have grown 24.67% 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 -0.14 -0.16 -0.19 -0.27EPS Actual -0.13 -0.19 -0.15 -0.23Revenue Estimate 15.81 M 14.93 M 14.56 M 13.60 MRevenue Actual 16.15 M 14.51 M 14.69 M 13.66 M

Stock Performance

Shares of Gaia were trading at $10.62 as of November 05. Over the last 52-week period, shares are up 21.53%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

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