Earnings Preview: Anaplan

Anaplan PLAN will be releasing its next round of earnings this Thursday, May 27. For all of the relevant information, here is your guide for Thursday's Q1 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

Anaplan EPS will likely be near $0.09 while revenue will be around $127.08 million, according to analysts. Anaplan's loss in the same period a year ago was $0.1 per share. Quarterly sales came in at $103.84 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.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 10.0%. Sales would be up 22.38% from the year-ago period. Anaplan's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Anaplan were trading at $57.61 as of May 25. Over the last 52-week period, shares are up 29.28%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Anaplan is scheduled to hold the call at 08:30:00 ET and can be accessed here.