Benzinga | Feb 17, 2021 10:12AM EST

Earnings Preview: Globant

On Thursday, February 18, Globant (NYSE:GLOB) 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

Analysts expect Globant earnings of $0.67 per share. Revenue will likely be around $222.34 million, according to the consensus estimate. In the same quarter last year, Globant reported earnings per share of $0.64 on revenue of $184.31 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 4.69% increase in the company's EPS figure. Revenue would be up 20.64% on a year-over-year basis. Here is how the Globant's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.58 0.48 0.62 0.61EPS Actual 0.60 0.51 0.64 0.64Revenue Estimate 203.76 M 179.90 M 188.79 M 183.16 MRevenue Actual 207.22 M 182.71 M 191.57 M 184.31 M

Stock Performance

Over the last 52-week period, shares are up 73.92%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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