On Monday, May 10, Novavax (NASDAQ:NVAX) will release its latest earnings report. Decipher the announcement with Benzinga's help.
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
Novavax EPS loss is expected to be around $3.6, according to sell-side analysts. Sales will likely be near $233.90 million. Novavax's loss in the same period a year ago was $0.58 per share. Quarterly sales came in at $3.38 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.
The Wall Street estimate would represent a 520.69% decline in the company's earnings. Sales would be have grown 6826.27% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
|Quarter||Q4 2021||Q3 2020||Q2 2020||Q1 2020|
|Revenue Estimate||304.88 M||230.56 M||39.58 M||1.74 M|
|Revenue Actual||276.66 M||157.02 M||35.54 M||3.38 M|
Shares of Novavax were trading at $172.52 as of May 06. Over the last 52-week period, shares are up 607.37%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Novavax is scheduled to hold the call at 16:30:00 ET and can be accessed here.