Market Overview

Earnings Outlook for Okta

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On Wednesday, December 02, Okta (NASDAQ:OKTA) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, 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

Sell-side analysts are expecting Okta's loss per share to be near $0.01 on sales of $202.70 million. In the same quarter last year, Okta posted EPS of $0.07 on sales of $153.04 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 analyst consensus estimate would represent a 85.71% increase in the company's earnings. Sales would be have grown 32.45% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.02 -0.17 -0.05 -0.12
EPS Actual 0.07 -0.07 -0.01 -0.07
Revenue Estimate 186.29 M 171.35 M 155.85 M 143.70 M
Revenue Actual 200.45 M 182.86 M 167.33 M 153.04 M

Stock Performance

Shares of Okta were trading at $245.04 as of November 30. Over the last 52-week period, shares are up 97.29%. 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. Okta is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings