Alarm.com Holdings ALRM announces its next round of earnings this Tuesday, May 04. Here is Benzinga's everything-that-matters guide for this Tuesday'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
Based on Alarm.com Holdings management projections, analysts predict EPS of $0.38 on revenue of $154.25 million. In the same quarter last year, Alarm.com Holdings announced EPS of $0.42 on revenue of $151.94 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 9.52% decline in the company's EPS figure. Sales would be have grown 1.52% 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 | 0.27 | 0.31 | 0.31 | 0.34 |
| EPS Actual | 0.45 | 0.49 | 0.41 | 0.42 |
| Revenue Estimate | 146.04 M | 129.51 M | 118.64 M | 125.61 M |
| Revenue Actual | 165.58 M | 158.85 M | 141.64 M | 151.94 M |
Stock Performance
Shares of Alarm.com Holdings were trading at $89.76 as of April 30. Over the last 52-week period, shares are up 110.05%. 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. Alarm.com Holdings is scheduled to hold the call at 16:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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