Market Overview

Earnings Preview: Momo

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Momo (NASDAQ:MOMO) releases its next round of earnings this Tuesday, December 01. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

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

Momo earnings will be near $0.38 per share on sales of $562.63 million, according to analysts. Momo EPS in the same period a year ago totaled $0.69. Sales were $622.81 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

If the company were to match the consensus estimate, earnings would be down 44.93%. Sales would be down 9.66% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.43 0.43 5.23 0.61
EPS Actual 0.43 0.47 0.68 0.69
Revenue Estimate 560.89 M 493.94 M 4.59 B 605.25 M
Revenue Actual 547.52 M 507.58 M 673.37 M 622.81 M

Stock Performance

Shares of Momo were trading at $15.12 as of November 27. Over the last 52-week period, shares are down 60.45%. 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. Momo is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings