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Market Overview

SPS Commerce's Earnings Outlook

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SPS Commerce (NASDAQ:SPSC) announces its next round of earnings this Thursday, February 11. Here is Benzinga's everything-that-matters guide for this Thursday'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 expect SPS Commerce earnings of $0.34 per share. Revenue will likely be around $80.57 million, according to the consensus estimate. SPS Commerce EPS in the same period a year ago totaled $0.35. Revenue was $72.73 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, earnings would be down 2.86%. Revenue would be up 10.78% on a year-over-year basis. Here is how the SPS Commerce's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.33 0.31 0.32 0.30
EPS Actual 0.39 0.37 0.38 0.35
Revenue Estimate 76.86 M 74.35 M 73.81 M 72.61 M
Revenue Actual 79.56 M 75.57 M 74.19 M 72.73 M

Stock Performance

Over the last 52-week period, shares are up 83.24%. 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. SPS Commerce is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings