Benzinga | Feb 10, 2021 10:34AM EST

Earnings Outlook for BJ's Restaurants

On Thursday, February 11, BJ's Restaurants (NASDAQ:BJRI) 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

Wall Street expects an EPS loss of $0.7 and sales around $202.07 million. BJ's Restaurants EPS in the same period a year ago totaled $0.54. Sales were $291.07 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 Wall Street estimate would represent a 229.63% decline in the company's earnings. Sales would be down 30.58% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.71 -1.91 0.08 0.45EPS Actual -0.44 -0.99 -0.10 0.54Revenue Estimate 182.96 M 131.27 M 273.31 M 292.31 MRevenue Actual 198.89 M 128.02 M 254.59 M 291.07 M

Stock Performance

Shares of BJ's Restaurants were trading at $54.14 as of February 09. Over the last 52-week period, shares are up 33.95%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. BJ's Restaurants is scheduled to hold the call at 17:00:00 ET and can be accessed here.