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Market Overview

Earnings Outlook For Zuora

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On Thursday, March 11, Zuora (NYSE:ZUO) 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 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 expects an EPS loss of $0.05 and sales around $76.05 million. Zuora reported a loss of $0.09 when it published results during the same quarter last year. Sales in that period totaled $70.39 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 match the consensus estimate when it reports Thursday, earnings would be up 44.44%. Revenue would be up 8.04% from the same quarter last year. Zuora'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 -0.05 -0.07 -0.10 -0.10
EPS Actual -0.01 0 -0.06 -0.09
Revenue Estimate 73.92 M 73.47 M 71.43 M 71.95 M
Revenue Actual 77.25 M 74.99 M 73.90 M 70.39 M

Stock Performance

Over the last 52-week period, shares are up 71.65%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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

 

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Posted-In: BZI-EPEarnings