Glu Mobile's Earnings: A Preview

Glu Mobile GLUU releases its next round of earnings this Tuesday, February 09. Here is Benzinga's essential guide to Glu Mobile's Q4 earnings report.

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

Glu Mobile EPS is expected to be around $0.12, according to sell-side analysts. Sales will likely be near $124.31 million. In the same quarter last year, Glu Mobile reported earnings per share of $0.07 on sales of $112.88 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.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be up 71.43%. Sales would be up 10.13% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Glu Mobile were trading at $9.19 as of February 05. Over the last 52-week period, shares are up 34.84%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

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