Benzinga | Mar 5, 2021 10:07AM EST

Earnings Preview: Stitch Fix

On Monday, March 08, Stitch Fix (NASDAQ:SFIX) 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 analysts see Stitch Fix reporting a loss of $0.22 per share on revenue of $512.37 million. In the same quarter last year, Stitch Fix posted EPS of $0.11 on sales of $451.78 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 300.0% decline in the company's earnings. Revenue would be have grown 13.41% from the same quarter last year. Stitch Fix's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate -0.20 -0.16 -0.16 0.06EPS Actual 0.09 -0.44 -0.33 0.11Revenue Estimate 481.17 M 414.31 M 406.66 M 452.53 MRevenue Actual 490.42 M 443.41 M 371.73 M 451.78 M

Stock Performance

Shares of Stitch Fix were trading at $69.9 as of March 04. Over the last 52-week period, shares are up 225.46%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

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