On Wednesday, May 12, Kamada (NASDAQ:KMDA) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
Net Income, Earnings, 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
Based on Kamada management projections, analysts predict EPS of $0.09 on revenue of $27.17 million. In the same quarter last year, Kamada reported EPS of $0.12 on revenue of $33.29 million.
Why Analyst Estimates And Earnings Surprises Are Important
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.
If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 25.0%. Sales would be down 18.38% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
|Quarter||Q4 2021||Q3 2020||Q2 2020||Q1 2020|
|Revenue Estimate||32.91 M||33.19 M||36.37 M||30.12 M|
|Revenue Actual||31.54 M||35.33 M||33.09 M||33.29 M|
Over the past 52-week period, shares of Kamada have declined 19.59%. 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. Kamada is scheduled to hold the call at 08:00:00 ET and can be accessed here.