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Earnings Outlook for Ra Medical Systems

Ra Medical Systems (NYSE:RMED) releases its next round of earnings this Tuesday, May 11. Here is Benzinga's essential guide to Ra Medical Systems's Q1 earnings report.

05/10/2021 10:12

Ra Medical Systems (NYSE:RMED) releases its next round of earnings this Tuesday, May 11. Here is Benzinga's essential guide to Ra Medical Systems's Q1 earnings report.

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

Analysts are predicting Ra Medical Systems will report a loss of $2.94 per share on revenue of $990.00 thousand. Ra Medical Systems EPS in the same period a year ago totaled $0.56. Sales were $1.37 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

The analyst consensus estimate would represent a 425.0% decrease in the company's earnings. Revenue would be down 27.95% on a year-over-year basis. 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
EPS Estimate -2.50 -0.13 -0.22 -0.34
EPS Actual -3.61 -0.13 -0.43 -0.56
Revenue Estimate 1.56 M 1.08 M 550.00 K 1.58 M
Revenue Actual 1.22 M 914.00 K 900.00 K 1.37 M

eps graph

Stock Performance

Shares of Ra Medical Systems were trading at $4.1 as of May 07. Over the last 52-week period, shares are up 260.95%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

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