Benzinga | Feb 5, 2021 10:07AM EST

Delta Apparel Earnings Preview

On Monday, February 08, Delta Apparel (AMEX:DLA) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, 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

Based on management's projections, Delta Apparel analysts model for earnings of $0.06 per share on sales of $94.10 million. Delta Apparel reported a profit of $0.13 per share when it published results during the same quarter last year. Sales in that period totaled $95.89 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.

If the company were to match the consensus estimate when it reports Monday, earnings would be down 53.85%. Sales would be down 1.87% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.55 -3.45 0.38 0.08EPS Actual 0.71 -0.01 0.19 0.13Revenue Estimate 116.60 M 72.10 M 108.90 M 95.16 MRevenue Actual 116.68 M 71.80 M 96.66 M 95.89 M

Stock Performance

Shares of Delta Apparel were trading at $22.81 as of February 04. Over the last 52-week period, shares are down 1.04%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

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