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Market Overview

Preview: Smartsheet's Earnings


Smartsheet (NYSE:SMAR) announces its next round of earnings this Monday, December 07. Here is Benzinga's everything-that-matters guide for this Monday's Q3 earnings announcement.

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

Analysts are expecting Smartsheet to report a loss of $0.21 per share. Revenue will likely be around $94.59 million, according to the consensus estimate. In the same quarter last year, Smartsheet reported EPS of $0.15 on revenue of $71.53 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 analyst consensus estimate would represent a 40.0% decline in the company's EPS figure. Revenue would be up 32.25% 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 -0.16 -0.20 -0.16 -0.18
EPS Actual -0.06 -0.11 -0.13 -0.15
Revenue Estimate 86.57 M 81.29 M 77.70 M 69.76 M
Revenue Actual 91.22 M 85.49 M 78.52 M 71.53 M

Stock Performance

Shares of Smartsheet were trading at $60.39 as of December 03. Over the last 52-week period, shares are up 40.58%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

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


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Posted-In: Earnings