Benzinga | Apr 28, 2021 11:07AM EDT

Preview: Biomarin Pharmaceutical's Earnings

Biomarin Pharmaceutical (NASDAQ:BMRN) releases its next round of earnings this Thursday, April 29. Here is Benzinga's essential guide to Biomarin Pharmaceutical's Q1 earnings report.

What Are Earnings, Net Income, 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, Biomarin Pharmaceutical analysts modeled for a loss of $0.1 per share on sales of $446.45 million. Biomarin Pharmaceutical earnings in the same period a year ago was $0.44 per share. Quarterly sales came in at $502.07 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.

The Wall Street consensus estimate for earnings would represent a 122.73% decrease for the company. Revenue would have fallen 11.08% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.19 1.29 -0.11 0.05EPS Actual 0.12 4.01 -0.16 0.44Revenue Estimate 440.23 M 454.64 M 418.61 M 468.77 MRevenue Actual 452.12 M 476.78 M 429.49 M 502.07 M

Stock Performance

Over the last 52-week period, shares are down 13.53%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Biomarin Pharmaceutical is scheduled to hold the call at 16:30:00 ET and can be accessed here.