Smartsheet's Earnings Outlook

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Smartsheet SMAR announces its next round of earnings this Tuesday, March 16. Here is Benzinga's everything-that-matters guide for this Tuesday'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

Sell-side analysts are expecting Smartsheet's loss per share to be near $0.13 on sales of $102.72 million. In the same quarter last year, Smartsheet reported a loss per share of $0.13 on revenue of $78.52 million.

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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 analyst consensus estimate would represent no change in the company's earnings. Revenue would be up 30.82% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.21 -0.16 -0.20 -0.16
EPS Actual -0.12 -0.06 -0.11 -0.13
Revenue Estimate 94.59 M 86.57 M 81.29 M 77.70 M
Revenue Actual 98.93 M 91.22 M 85.49 M 78.52 M

Stock Performance

Shares of Smartsheet were trading at $66.94 as of March 12. Over the last 52-week period, shares are up 83.77%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Smartsheet is scheduled to hold the call at 16:30:00 ET and can be accessed here.

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Posted In: EarningsBZI-EP
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