Benzinga | Feb 22, 2021 10:14AM EST

Earnings Preview for Clovis Oncology

Clovis Oncology (NASDAQ:CLVS) announces its next round of earnings this Tuesday, February 23. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

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

Based on management's projections, Clovis Oncology analysts modeled for a loss of $0.77 per share on sales of $43.22 million. Clovis Oncology EPS in the same period a year ago totaled $1.81. Sales were $39.31 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 57.46% increase in the company's earnings. Sales would be up 9.95% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.99 -1.04 -1.28 -1.71EPS Actual -0.89 -1.11 -1.28 -1.81Revenue Estimate 42.64 M 44.65 M 41.24 M 38.97 MRevenue Actual 38.77 M 39.89 M 42.56 M 39.31 M

Stock Performance

Shares of Clovis Oncology were trading at $6.65 as of February 19. Over the last 52-week period, shares are down 15.27%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Clovis Oncology is scheduled to hold the call at 08:30:00 ET and can be accessed here.