CommVault Systems Earnings Preview

CommVault Systems CVLT releases its next round of earnings this Wednesday, January 27. Get the latest predictions in Benzinga's essential guide to the company's Q3 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

CommVault Systems EPS is expected to be around $0.47, according to sell-side analysts. Sales will likely be near $175.54 million. In the same quarter last year, CommVault Systems posted EPS of $0.47 on sales of $176.35 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.

If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be down 0%. Revenue would be down 0.46% from the year-ago period. Here is how the CommVault Systems's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of CommVault Systems were trading at $59.44 as of January 25. Over the last 52-week period, shares are up 31.56%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CommVault Systems is scheduled to hold the call at 11:00:00 ET and can be accessed here.