Benzinga | Feb 10, 2021 10:42AM EST

GoDaddy's Earnings: A Preview

On Thursday, February 11, GoDaddy (NYSE:GDDY) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Sell-side analysts expect GoDaddy's EPS to be near $0.36 on sales of $865.03 million. In the same quarter last year, GoDaddy posted EPS of $0.34 on sales of $780.40 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 match the consensus estimate when it reports Thursday, earnings would be up 5.88%. Sales would be have grown 10.84% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.33 0.15 0.17 0.31EPS Actual 0.38 0.25 0.24 0.34Revenue Estimate 835.17 M 794.27 M 789.86 M 777.18 MRevenue Actual 844.40 M 806.40 M 792.00 M 780.40 M

Stock Performance

Over the last 52-week period, shares of GoDaddy are up 29.8%.

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