Benzinga | Mar 15, 2021 11:41AM EDT

Earnings Preview for SharpSpring

SharpSpring (NASDAQ:SHSP) unveils its next round of earnings this Tuesday, March 16. Get prepared with Benzinga's ultimate preview for SharpSpring's Q4 earnings.

What Are Earnings, Net Income, 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

Wall Street analysts see SharpSpring reporting a quarterly loss of $0.13 per share on sales of $7.61 million. SharpSpring reported a per-share loss of $0.19 when it published results during the same quarter last year. Sales in that period totaled $6.13 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.

The analyst consensus estimate would represent a 31.58% increase in the company's earnings. Revenue would be up 24.1% on a year-over-year basis. SharpSpring's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.03 -0.11 -0.14 -0.18EPS Actual -0.06 -0.03 -0.07 -0.19Revenue Estimate 7.53 M 7.26 M 6.85 M 5.95 MRevenue Actual 7.31 M 7.27 M 7.05 M 6.13 M

Stock Performance

Over the last 52-week period, shares are up 152.41%. 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. SharpSpring is scheduled to hold the call at 16:30:00 ET and can be accessed here.