Preview: Talend's Earnings

On Wednesday, February 10, Talend TLND will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Wall Street expects an EPS loss of $0.3 and sales around $74.89 million. In the same quarter last year, Talend reported a loss per share of $0.07 on revenue of $66.92 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 report earnings in line when it publishes results Wednesday, quarterly profit would be down 328.57%. Sales would be up 11.9% on a year-over-year basis. Talend's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Talend were trading at $50.27 as of February 08. Over the last 52-week period, shares are up 37.79%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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