Benzinga | Nov 9, 2020 10:20AM EST

Earnings Preview for HTG Molecular Diagnostics

On Tuesday, November 10, HTG Molecular Diagnostics (NASDAQ: HTGM) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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

Based on HTG Molecular Diagnostics management projections, analysts predict EPS of $0.08 on revenue of $2.23 million. HTG Molecular Diagnostics's loss in the same period a year ago was $0.15 per share. Quarterly sales came in at $5.41 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 report earnings in line when it publishes results Tuesday, earnings would be up 46.67%. Revenue would be down 58.74% 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 -0.10 -0.09 -0.16EPS Actual -0.09 -0.08 -0.01 -0.15Revenue Estimate 1.79 M 3.04 M 4.85 M 5.47 MRevenue Actual 1.96 M 2.23 M 4.80 M 5.41 M

Stock Performance

Shares of HTG Molecular Diagnostics were trading at $0.3286 as of November 06. Over the last 52-week period, shares are down 56.89%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

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