Market Overview

Elastic Earnings Preview

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On Wednesday, December 02, Elastic (NYSE:ESTC) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, 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

Wall Street analysts see Elastic reporting a quarterly loss of $0.2 per share on sales of $130.50 million. In the same quarter last year, Elastic announced EPS of $0.22 on revenue of $101.11 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 when it reports Wednesday, earnings would be up 9.09%. Revenue would be up 29.07% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate -0.18 -0.31 -0.35 -0.31
EPS Actual 0.06 -0.12 -0.28 -0.22
Revenue Estimate 120.86 M 116.95 M 107.33 M 96.46 M
Revenue Actual 128.87 M 123.62 M 113.18 M 101.11 M

Stock Performance

Shares of Elastic were trading at $123.71 as of November 30. Over the last 52-week period, shares are up 55.82%. 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. Elastic is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings