Benzinga | Nov 6, 2020 10:19AM EST

Earnings Outlook For Iridex

Iridex (NASDAQ: IRIX) unveils its next round of earnings this Monday, November 09. Get prepared with Benzinga's ultimate preview for Iridex's Q3 earnings.

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

Based on Iridex management projections, analysts predict EPS of $0.17 on revenue of $7.79 million. In the same quarter last year, Iridex posted EPS of $0.13 on sales of $10.66 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Monday, earnings would be down 30.77%. Revenue would have fallen 26.95% from the same quarter last year. Iridex's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.22 -0.16 -0.15 -0.17EPS Actual -0.20 -0.12 -0.11 -0.13Revenue Estimate 5.94 M 9.76 M 10.88 M 10.08 MRevenue Actual 6.22 M 9.02 M 11.76 M 10.66 M

Stock Performance

Shares of Iridex were trading at $1.82 as of November 05. Over the last 52-week period, shares are down 10.4%. 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. Iridex is scheduled to hold the call at 17:00:00 ET and can be accessed here.