Benzinga | Mar 17, 2021 10:42AM EDT

Earnings Outlook for Weibo

On Thursday, March 18, Weibo (NASDAQ:WB) will release its latest earnings report. Benzinga's outlook for Weibo is included in the following report.

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

Weibo earnings will be near $0.74 per share on sales of $499.05 million, according to analysts. Weibo earnings in the same period a year ago was $0.77 per share. Quarterly sales came in at $468.15 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, earnings would be down 3.9%. Revenue would be have grown 6.6% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.60 0.46 0.31 0.72EPS Actual 0.66 0.50 0.30 0.77Revenue Estimate 449.26 M 379.94 M 312.52 M 468.91 MRevenue Actual 465.74 M 387.39 M 323.39 M 468.15 M

Stock Performance

Shares of Weibo were trading at $50.25 as of March 16. Over the last 52-week period, shares are up 45.14%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Weibo is scheduled to hold the call at 07:00:00 ET and can be accessed here.