Radcom (NASDAQ:RDCM) 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.
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 covering Radcom have modeled for quarterly EPS loss of $0.08 on revenue of $9.21 million. In the same quarter last year, Radcom reported EPS of $0.17 on revenue of $8.33 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 Wall Street estimate would represent a 52.94% increase in the company's earnings. Sales would be up 10.59% from the year-ago period. 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||9.57 M||87.51 M||8.87 M||8.01 M|
|Revenue Actual||10.25 M||9.83 M||9.16 M||8.33 M|
Shares of Radcom were trading at $9.5 as of May 07. Over the last 52-week period, shares are up 35.96%. 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. Radcom is scheduled to hold the call at 08:00:00 ET and can be accessed here.