Benzinga | Mar 1, 2021 10:19AM EST

Earnings Preview for Abercrombie & Fitch

On Tuesday, March 02, Abercrombie & Fitch (NYSE:ANF) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Based on Abercrombie & Fitch management projections, analysts predict EPS of $1.2 on revenue of $1.12 billion. Abercrombie & Fitch earnings in the same period a year ago was $1.31 per share. Quarterly sales came in at $1.19 billion.

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 8.4% decrease in the company's earnings. Sales would be down 5.49% from the year-ago period. Here is how the Abercrombie & Fitch's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.04 -0.83 -1.26 1.24EPS Actual 0.76 0.23 -3.29 1.31Revenue Estimate 739.36 M 658.44 M 536.99 M 1.17 BRevenue Actual 819.65 M 698.33 M 485.36 M 1.19 B

Stock Performance

Over the last 52-week period, shares are up 120.33%. 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. Abercrombie & Fitch is scheduled to hold the call at 08:30:00 ET and can be accessed here.