Benzinga | Feb 22, 2021 10:18AM EST

Arlo Technologies's Earnings: A Preview

Arlo Technologies (NYSE:ARLO) 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, Arlo Technologies analysts modeled for a loss of $0.18 per share on sales of $111.57 million. In the same quarter last year, Arlo Technologies posted a loss of $0.26 per share on sales of $122.41 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.

The analyst consensus estimate would represent a 30.77% increase in the company's EPS figure. Revenue would be down 8.86% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.25 -0.41 -0.35 -0.31EPS Actual -0.10 -0.31 -0.34 -0.26Revenue Estimate 90.48 M 54.83 M 63.88 M 121.02 MRevenue Actual 110.24 M 66.63 M 65.45 M 122.41 M

Stock Performance

Over the last 52-week period, shares are up 82.75%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Arlo Technologies is scheduled to hold the call at 17:00:00 ET and can be accessed here.