Descartes Systems Gr DSGX announces its next round of earnings this Wednesday, June 02. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.
What Are Earnings, Net Income, 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
Sell-side analysts expect Descartes Systems Gr's EPS to be near $0.17 on sales of $93.02 million. In the same quarter last year, Descartes Systems Gr posted EPS of $0.13 on sales of $83.70 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 Wall Street consensus estimate for earnings would represent a 30.77% increase for the company. Sales would be have grown 11.14% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.16 | 0.14 | 0.12 | 0.13 |
| EPS Actual | 0.20 | 0.15 | 0.12 | 0.13 |
| Revenue Estimate | 89.47 M | 85.98 M | 81.41 M | 85.54 M |
| Revenue Actual | 93.41 M | 87.51 M | 84.05 M | 83.70 M |
Stock Performance
Shares of Descartes Systems Gr were trading at $58.44 as of May 31. Over the last 52-week period, shares are up 19.54%. 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. Descartes Systems Gr is scheduled to hold the call at 17:00:00 ET and can be accessed here.
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