Earnings Preview for MakeMyTrip

MakeMyTrip MMYT releases its next round of earnings this Tuesday, May 25. Here is Benzinga's essential guide to MakeMyTrip's Q4 earnings report.

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

Analysts covering MakeMyTrip have modeled for quarterly EPS loss of $0.12 on revenue of $76.86 million. In the same quarter last year, MakeMyTrip reported EPS of $0.17 on revenue of $137.18 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 post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 29.41%. Revenue would be down 43.97% from the same quarter last year. MakeMyTrip's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of MakeMyTrip were trading at $25.88 as of May 21. Over the last 52-week period, shares are up 62.02%. 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. MakeMyTrip is scheduled to hold the call at 07:30:00 ET and can be accessed here.