Market Overview

Earnings Preview: Globant

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On Thursday, November 12, Globant (NYSE: GLOB) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Globant EPS is expected to be around $0.58, according to sell-side analysts. Sales will likely be near $203.76 million. Globant reported a profit of $0.62 per share when it published results during the same quarter last year. Sales in that period totaled $171.33 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 consensus estimate for earnings would represent a 6.45% decrease for the company. Sales would be up 18.93% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.48 0.62 0.61 0.59
EPS Actual 0.51 0.64 0.64 0.62
Revenue Estimate 179.90 M 188.79 M 183.16 M 170.64 M
Revenue Actual 182.71 M 191.57 M 184.31 M 171.33 M

Stock Performance

Shares of Globant were trading at $190.32 as of November 10. Over the last 52-week period, shares are up 78.27%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

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

 

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Posted-In: Earnings