Benzinga | Dec 8, 2020 10:06AM EST

A Preview Of Lovesac's Earnings

Lovesac (NASDAQ:LOVE) announces its next round of earnings this Wednesday, December 09. Here is Benzinga's everything-that-matters guide for this Wednesday's Q3 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

Wall Street expects an EPS loss of $0.88 and sales around $66.14 million. In the same quarter last year, Lovesac reported EPS of $0.46 on revenue of $52.10 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.

The analyst consensus estimate would represent a 91.3% decrease in the company's earnings. Revenue would be have grown 26.96% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.48 -0.67 0.33 -0.43EPS Actual -0.08 -0.58 0.37 -0.46Revenue Estimate 52.35 M 47.20 M 90.64 M 54.29 MRevenue Actual 61.95 M 54.37 M 92.17 M 52.10 M

Stock Performance

Over the last 52-week period, shares are up 130.55%. Given that these returns are generally positive, long-term shareholders can relax 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. Lovesac is scheduled to hold the call at 08:30:00 ET and can be accessed here.