Benzinga | Nov 9, 2020 10:07AM EST

CyberArk Software's Earnings: A Preview

On Tuesday, November 10, CyberArk Software (NASDAQ: CYBR) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, 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

CyberArk Software earnings will be near $0.29 per share on sales of $112.04 million, according to analysts. CyberArk Software reported a profit of $0.65 per share when it published results during the same quarter last year. Sales in that period totaled $108.11 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.

If the company were to match the consensus estimate, earnings would be down 55.38%. Sales would be up 3.63% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.27 0.36 0.81 0.47EPS Actual 0.42 0.50 0.97 0.65Revenue Estimate 101.19 M 105.63 M 126.37 M 103.08 MRevenue Actual 106.50 M 106.83 M 129.66 M 108.11 M

Stock Performance

Over the past 52-week period, shares of CyberArk Software have declined 6.54%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CyberArk Software is scheduled to hold the call at 08:30:00 ET and can be accessed here.