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
NIO‘s per-share loss will be near $0.16 on sales of $1.02 billion, according to Wall Street analysts. In the same quarter last year, NIO reported a loss per share of $0.22 on revenue of $193.76 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 27.27%. Revenue would be have grown 426.44% from the same quarter last year. The company’s reported EPS has stacked up against analyst estimates in the past like this:
|Quarter||Q4 2021||Q3 2020||Q2 2020||Q1 2020|
|Revenue Estimate||1.01 B||655.28 M||503.58 M||234.10 M|
|Revenue Actual||1.02 B||666.60 M||526.38 M||193.76 M|
Shares of NIO were trading at $41.205 as of April 27. Over the last 52-week period, shares are up 1114.66%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. NIO is scheduled to hold the call at 08:00:00 ET and can be accessed here.