Domo's Earnings: A Preview
Domo (NASDAQ:DOMO) announces its next round of earnings this Thursday, December 03. Here is Benzinga's look at Domo's Q3 earnings report.
Net Income, Earnings, 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 are predicting Domo will report a loss of $0.44 per share on revenue of $51.76 million. In the same quarter last year, Domo posted a loss of $0.85 per share on sales of $44.77 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 48.24% increase in the company's earnings. Sales would be have grown 15.62% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:
EPS Estimate | -0.50 | -0.91 | -0.96 | -1.01 |
EPS Actual | -0.37 | -0.65 | -0.85 | -0.85 |
Revenue Estimate | 49.03 M | 45.65 M | 45.71 M | 41.81 M |
Revenue Actual | 51.13 M | 48.56 M | 46.17 M | 44.77 M |
Stock Performance
Shares of Domo were trading at $37.67 as of December 01. Over the last 52-week period, shares are up 84.05%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Domo is scheduled to hold the call at 17:00:00 ET and can be accessed here.
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