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Preview: Descartes Systems Gr's Earnings

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Descartes Systems Gr (NASDAQ:DSGX) releases its next round of earnings this Wednesday, December 02. Here is Benzinga's essential guide to Descartes Systems Gr's Q3 earnings report.

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

Descartes Systems Gr earnings will be near $0.14 per share on sales of $86.14 million, according to analysts. Descartes Systems Gr reported a profit of $0.11 per share when it published results during the same quarter last year. Sales in that period totaled $83.03 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 27.27% increase for the company. Sales would be up 3.75% on a year-over-year basis. 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 0.12 0.13 0.12 0.11
EPS Actual 0.12 0.13 0.13 0.11
Revenue Estimate 81.41 M 85.54 M 84.50 M 82.90 M
Revenue Actual 84.05 M 83.70 M 84.20 M 83.03 M

Stock Performance

Shares of Descartes Systems Gr were trading at $59.29 as of November 30. Over the last 52-week period, shares are up 38.81%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Descartes Systems Gr is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings