Earnings Preview for Smartsheet

On Wednesday, June 02, Smartsheet SMAR will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Based on Smartsheet management projections, analysts predict EPS of $0.14 on revenue of $111.81 million. In the same quarter last year, Smartsheet reported EPS of $0.11 on revenue of $85.49 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 27.27%. Revenue would be up 30.79% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Over the past 52-week period, shares of Smartsheet have declined 0.37%.

Do not be surprised to see the stock move on comments made during its conference call. Smartsheet is scheduled to hold the call at 16:30:00 ET and can be accessed here.