Benzinga | Feb 5, 2021 10:08AM EST

Earnings Preview for Varonis Systems

Varonis Systems (NASDAQ:VRNS) announces its next round of earnings this Monday, February 08. Here is Benzinga's everything-that-matters guide for this Monday's Q4 earnings announcement.

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

Varonis Systems EPS will likely be near $0.12 while revenue will be around $84.36 million, according to analysts. In the same quarter last year, Varonis Systems reported a loss per share of $0.09 on sales of $72.56 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 233.33% increase in the company's earnings. Revenue would be up 16.26% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.13 -0.35 -0.59 -0.08EPS Actual 0.06 -0.15 -0.56 -0.09Revenue Estimate 70.17 M 56.99 M 54.05 M 72.16 MRevenue Actual 76.75 M 66.56 M 54.18 M 72.56 M

Stock Performance

For a full 12 months, the return has risen by 105.87%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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