Benzinga | Feb 16, 2021 10:24AM EST

Earnings Outlook for Pegasystems

On Wednesday, February 17, Pegasystems (NASDAQ:PEGA) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, 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

Pegasystems EPS is expected to be around $0.22, according to sell-side analysts. Sales will likely be near $313.03 million. In the same quarter last year, Pegasystems reported earnings per share of $0.19 on sales of $276.54 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Wednesday, earnings would be up 15.79%. Revenue would be up 13.19% 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 Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.07 -0.23 -0.01 0.37EPS Actual -0.33 -0.28 0.05 0.19Revenue Estimate 249.91 M 225.71 M 255.98 M 290.22 MRevenue Actual 225.95 M 227.38 M 265.59 M 276.54 M

Stock Performance

Shares of Pegasystems were trading at $146.71 as of February 15. Over the last 52-week period, shares are up 51.08%. 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. Pegasystems is scheduled to hold the call at 17:00:00 ET and can be accessed here.