Tesla (NASDAQ: TSLA) will release its Q4 2020 earnings report on January 27, after the close of trading. Over the last quarter of the year, the company delivered a record 180,570 vehicles and, despite the impact of COVID-19 on the global economy, reached its 2020 target of delivering half a million vehicles. What investors can expect:
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
Wall Street analysts see Tesla reporting earnings of $1.01 per share on sales of $10.32 billion. Tesla's earnings in the same period a year ago was $0.41 per share, with quarterly sales at that time of $7.38 billion.
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 analyst consensus estimate would represent a 146.34% increase in the company's earnings. Sales would be up 39.76% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:
|Quater||Q3 2020||Q2 2020||Q1 2020||Q4 2020|
|Revenue Estimate||8.26 B||5.23 B||5.90 B||7.02 B|
|Revenue Actual||8.77 B||6.04 B||5.99 B||7.38 B|
At the time of this writing, Tesla shares are trading at $885 per share, which corresponds to a market capitalization of over $839 billion. Over the past 52 weeks, the share price has risen by 662%.
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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.