Benzinga | Feb 8, 2021 10:15AM EST

cbdMD's Earnings Outlook

cbdMD (AMEX:YCBD) unveils its next round of earnings this Tuesday, February 09. Get prepared with Benzinga's ultimate preview for cbdMD's Q1 earnings.

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

Sell-side analysts are expecting cbdMD's loss per share to be near $0.01 on sales of $11.85 million. cbdMD earnings in the same period a year ago was $0.45 per share. Quarterly sales came in at $10.15 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.

The analyst consensus estimate would represent a 102.22% decline in the company's EPS figure. Revenue would be up 16.77% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.01 -0.03 -0.08 -0.15EPS Actual -0.16 -0.18 0.42 0.45Revenue Estimate 11.20 M 9.57 M 11.33 M 11.03 MRevenue Actual 11.70 M 10.64 M 9.40 M 10.15 M

Stock Performance

Shares of cbdMD were trading at $4.88 as of February 05. Over the last 52-week period, shares are up 362.73%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. cbdMD is scheduled to hold the call at 16:15:00 ET and can be accessed here.