Benzinga | Jan 27, 2021 10:33AM EST

Earnings Outlook for MakeMyTrip

On Thursday, January 28, MakeMyTrip (NASDAQ:MMYT) 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 MakeMyTrip management projections, analysts predict EPS of $0.19 on revenue of $60.71 million. MakeMyTrip's loss in the same period a year ago was $0.15 per share. Quarterly sales came in at $206.66 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 26.67% decrease in the company's earnings. Sales would be down 70.62% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020EPS Estimate -0.31 -0.5 -0.30 -0.29EPS Actual -0.07 -0.2 -0.17 -0.15Revenue Estimate 24.94 M 10.55 M 147.85 M 199.52 MRevenue Actual 23.09 M 6.36 M 137.18 M 206.66 M

Stock Performance

Shares of MakeMyTrip were trading at $29.94 as of January 26. Over the last 52-week period, shares are up 20.41%. Given that these returns are generally positive, long-term shareholders are probably 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.