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Market Overview

Earnings Outlook for Trupanion

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On Wednesday, February 10, Trupanion (NASDAQ:TRUP) will release its latest earnings report. Benzinga's outlook for Trupanion is included in the following report.

What Are Earnings, Net Income, 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

Sell-side analysts are expecting Trupanion's loss per share to be near $0.03 on sales of $139.24 million. Trupanion reported a profit of $0.02 per share when it published results during the same quarter last year. Sales in that period totaled $105.48 million.

Why Analyst Estimates And Earnings Surprises Are Important

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, EPS would have fallen 250.0%. Revenue would be up 32.0% from the same quarter last year. 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 -0.04 -0.02 -0.04 0.01
EPS Actual -0.07 0.04 -0.03 0.02
Revenue Estimate 126.53 M 114.58 M 110.11 M 104.89 M
Revenue Actual 130.12 M 117.92 M 111.30 M 105.48 M

Stock Performance

For a full 12 months, the return has risen by 243.83%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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

 

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Posted-In: BZI-EPEarnings