Benzinga | Mar 2, 2021 10:11AM EST

Earnings Preview: National Vision Holdings

On Wednesday, March 03, National Vision Holdings (NASDAQ:EYE) 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

Analysts predict National Vision Holdings will report earnings of $0.13 per share on revenue of $472.70 million. In the same quarter last year, National Vision Holdings reported earnings per share of $0.11 on revenue of $401.76 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 report earnings in line when it publishes results Wednesday, quarterly profit would be up 18.18%. Revenue would be up 17.66% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.27 -0.53 0.14 0.01EPS Actual 0.54 -0.41 0.28 0.11Revenue Estimate 487.71 M 246.63 M 445.69 M 388.29 MRevenue Actual 485.35 M 260.01 M 469.70 M 401.76 M

Stock Performance

Over the last 52-week period, shares are up 35.06%. 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. National Vision Holdings is scheduled to hold the call at 10:00:00 ET and can be accessed here.