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Market Overview

Preview: Cornerstone OnDemand's Earnings


Cornerstone OnDemand (NASDAQ:CSOD) unveils its next round of earnings this Tuesday, February 16. Get prepared with Benzinga's ultimate preview for Cornerstone OnDemand's Q4 earnings.

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

Analysts covering Cornerstone OnDemand modeled for quarterly EPS of $0.27 on revenue of $196.02 million. In the same quarter last year, Cornerstone OnDemand announced EPS of $0.43 on revenue of $149.59 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.

The Wall Street estimate would represent a 37.21% decline in the company's earnings. Revenue would be have grown 31.03% from the same quarter last year. Cornerstone OnDemand's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.20 0.22 0.24 0.34
EPS Actual 0.51 0.40 0.23 0.43
Revenue Estimate 188.27 M 178.51 M 147.66 M 146.24 M
Revenue Actual 199.50 M 184.36 M 150.14 M 149.59 M

Stock Performance

Shares of Cornerstone OnDemand were trading at $46.78 as of February 11. Over the last 52-week period, shares are down 19.98%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cornerstone OnDemand is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings