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Market Overview

Earnings Preview: Alarm.com Holdings

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On Thursday, February 25, Alarm.com Holdings (NASDAQ:ALRM) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, 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

Sell-side analysts expect Alarm.com Holdings's EPS to be near $0.27 on sales of $146.04 million. Alarm.com Holdings earnings in the same period a year ago was $0.43 per share. Quarterly sales came in at $140.49 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 consensus estimate for earnings would represent a 37.21% decrease for the company. Sales would be have grown 3.95% from the same quarter last year. Alarm.com Holdings'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 0.31 0.31 0.34 0.33
EPS Actual 0.49 0.41 0.42 0.43
Revenue Estimate 129.51 M 118.64 M 125.61 M 113.60 M
Revenue Actual 158.85 M 141.64 M 151.94 M 140.49 M

Stock Performance

Over the last 52-week period, shares are up 98.62%. 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. Alarm.com Holdings is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings