Guardant Health Earnings Preview

( – On Wednesday, February 24, Guardant Health (NASDAQ:GH) 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

Analysts are expecting Guardant Health to report a loss of $0.57 per share. Revenue will likely be around $76.73 million, according to the consensus estimate. Guardant Health EPS in the same period a year ago totaled $0.27. Revenue was $62.90 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.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 111.11%. Revenue would be have grown 21.99% from the same quarter last year. Guardant Health’s reported EPS has stacked up against analyst estimates in the past like this:

QuarterQ3 2020Q2 2020Q1 2020Q4 2020
EPS Estimate-0.39-0.38-0.39-0.32
EPS Actual-0.78-0.57-0.29-0.27
Revenue Estimate65.84 M59.17 M56.47 M54.83 M
Revenue Actual74.57 M66.33 M67.51 M62.90 M

Stock Performance

Shares of Guardant Health were trading at $159.95 as of February 22. Over the last 52-week period, shares are up 85.11%. 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. Guardant Health is scheduled to hold the call at 17:00:00 ET and can be accessed here.

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