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Earnings Preview: trivago

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trivago (NASDAQ:TRVG) announces its next round of earnings this Tuesday, February 09. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

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

Analysts covering trivago have modeled for quarterly EPS loss of $0.03 on revenue of $44.68 million. trivago EPS in the same period a year ago totaled $0.01. Sales were $174.12 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.

If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 400.0%. Sales would be down 74.34% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.03 -0.06 0 0.01
EPS Actual -0.01 -0.07 -0.02 0.01
Revenue Estimate 82.16 M 28.60 M 161.81 M 179.23 M
Revenue Actual 70.87 M 17.77 M 154.20 M 174.12 M

Stock Performance

Shares of trivago were trading at $2.62 as of February 05. Over the last 52-week period, shares are down 6.51%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. trivago is scheduled to hold the call at 08:15:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings