Perrigo Co (NYSE:PRGO) releases its next round of earnings this Tuesday, May 11. Get the latest predictions in Benzinga's essential guide to the company's Q1 earnings report.
Net Income, Earnings, 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 expects EPS of $0.57 and sales around $1.02 billion. Perrigo Co earnings in the same period a year ago was $1.14 per share. Quarterly sales came in at $1.34 billion.
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 report earnings in line when it publishes results Tuesday, quarterly profit would be down 50.0%. Revenue would be down 23.94% 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||1.32 B||1.24 B||1.24 B||1.31 B|
|Revenue Actual||1.29 B||1.21 B||1.22 B||1.34 B|
Shares of Perrigo Co were trading at $42.98 as of May 07. Over the last 52-week period, shares are down 18.06%. 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. Perrigo Co is scheduled to hold the call at 08:00:00 ET and can be accessed here.