Benzinga | Apr 28, 2021 11:02AM EDT

A Preview Of SPS Commerce's Earnings

SPS Commerce (NASDAQ:SPSC) announces its next round of earnings this Thursday, April 29. Here is Benzinga's look at SPS Commerce's Q1 earnings report.

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

SPS Commerce EPS will likely be near $0.37 while revenue will be around $87.50 million, according to analysts. SPS Commerce EPS in the same period a year ago totaled $0.38. Revenue was $74.19 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 Wall Street consensus estimate for earnings would represent a 2.63% decrease for the company. Sales would be up 17.94% on a year-over-year basis. Here is how the SPS Commerce's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.34 0.33 0.31 0.32EPS Actual 0.40 0.39 0.37 0.38Revenue Estimate 80.57 M 76.86 M 74.35 M 73.81 MRevenue Actual 83.31 M 79.56 M 75.57 M 74.19 M

Stock Performance

Shares of SPS Commerce were trading at $102.09 as of April 27. Over the last 52-week period, shares are up 82.2%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

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