Benzinga | Dec 4, 2020 10:04AM EST

Coupa Software Earnings Preview

On Monday, December 07, Coupa Software (NASDAQ:COUP) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings 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

Wall Street analysts see Coupa Software reporting earnings of $0.03 per share on sales of $124.01 million. Coupa Software reported a profit of $0.2 per share when it published results during the same quarter last year. Sales in that period totaled $101.78 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 report earnings in line when it publishes results Monday, quarterly profit would be down 85.0%. Sales would be up 21.84% on a year-over-year basis. Coupa Software's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.08 0.07 0.05 0.06EPS Actual 0.21 0.20 0.21 0.20Revenue Estimate 118.84 M 111.51 M 102.44 M 96.19 MRevenue Actual 125.92 M 119.21 M 111.45 M 101.78 M

Stock Performance

Over the last 52-week period, shares are up 114.25%. 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. Coupa Software is scheduled to hold the call at 16:30:00 ET and can be accessed here.