Earnings Preview for Zuora

Zuora ZUO announces its next round of earnings this Wednesday, May 26. 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

Zuora EPS will likely be near $0.04 while revenue will be around $79.00 million, according to analysts. Zuora reported a loss of $0.06 when it published results during the same quarter last year. Sales in that period totaled $73.90 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 match the consensus estimate when it reports Wednesday, earnings would be up 33.33%. Sales would be up 6.9% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Over the last 52-week period, shares of Zuora are up 29.25%.

Do not be surprised to see the stock move on comments made during its conference call. Zuora is scheduled to hold the call at 17:00:00 ET and can be accessed here.