Yext's Earnings: A Preview

Yext YEXT announces its next round of earnings this Thursday, May 27. Here is Benzinga's look at Yext's Q1 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Yext reporting a loss of $0.06 per share on revenue of $88.55 million. In the same quarter last year, Yext posted a loss of $0.1 per share on sales of $85.35 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.

The Wall Street consensus estimate for earnings would represent a 40.0% increase for the company. Revenue would be up 3.75% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Yext were trading at $12.59 as of May 25. Over the last 52-week period, shares are down 16.51%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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