CyberArk Software's Earnings: A Preview

CyberArk Software CYBR releases its next round of earnings this Thursday, February 11. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings 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

Wall Street analysts see CyberArk Software reporting earnings of $0.6 per share on revenue of $128.97 million. CyberArk Software reported a profit of $0.97 per share when it published results during the same quarter last year. Sales in that period totaled $129.66 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 Thursday, earnings would be down 38.14%. Revenue would be down 0.54% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 38.62%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CyberArk Software is scheduled to hold the call at 08:30:00 ET and can be accessed here.