A Preview Of Snap's Earnings
Snap (NYSE:SNAP) releases its next round of earnings this Thursday, February 04. Here is Benzinga's essential guide to Snap's Q4 earnings report.
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 analysts see Snap reporting earnings of $0.07 per share on revenue of $854.26 million. Snap EPS in the same period a year ago totaled $0.03. Revenue was $560.89 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.
The analyst consensus estimate would represent a 133.33% increase in the company's EPS figure. Revenue would be up 52.3% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:
EPS Estimate | -0.05 | -0.10 | -0.07 | 0.01 |
EPS Actual | 0.01 | -0.09 | -0.08 | 0.03 |
Revenue Estimate | 549.99 M | 433.11 M | 431.43 M | 562.45 M |
Revenue Actual | 678.67 M | 454.16 M | 462.48 M | 560.89 M |
Stock Performance
Over the last 52-week period, shares of Snap are up 251.18%.
Do not be surprised to see the stock move on comments made during its conference call. Snap is scheduled to hold the call at 17:00:00 ET and can be accessed here.
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