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Market Overview

Earnings Outlook For Chegg

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On Monday, May 03, Chegg (NYSE:CHGG) 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 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

Wall Street expects EPS of $0.3 and sales around $184.59 million. Chegg EPS in the same period a year ago totaled $0.22. Sales were $131.59 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.

The analyst consensus estimate would represent a 36.36% increase in the company's EPS figure. Sales would be up 40.28% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.49 0.10 0.32 0.15
EPS Actual 0.55 0.17 0.37 0.22
Revenue Estimate 189.55 M 143.68 M 136.61 M 122.73 M
Revenue Actual 205.72 M 154.02 M 153.01 M 131.59 M

eps graph

Stock Performance

Shares of Chegg were trading at $92.23 as of April 29. Over the last 52-week period, shares are up 110.85%. 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. Chegg is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings