On Wednesday, May 12, Strongbridge Biopharma (NASDAQ:SBBP) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
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
Sell-side analysts are expecting Strongbridge Biopharma's loss per share to be near $0.1 on sales of $8.31 million. Strongbridge Biopharma EPS in the same period a year ago totaled $0.19. Revenue was $6.67 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 47.37% increase in the company's earnings. Sales would be up 24.51% 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|
|Revenue Estimate||8.04 M||7.24 M||6.00 M||5.94 M|
|Revenue Actual||8.23 M||8.07 M||7.76 M||6.67 M|
Shares of Strongbridge Biopharma were trading at $2.42 as of May 10. Over the last 52-week period, shares are down 18.92%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Strongbridge Biopharma is scheduled to hold the call at 08:30:00 ET and can be accessed here.