Benzinga | Mar 8, 2021 10:08AM EST

Cumberland Earnings Preview

Cumberland (NASDAQ:CPIX) announces its next round of earnings this Tuesday, March 09. Here is Benzinga's look at Cumberland's Q4 earnings report.

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

Wall Street analysts see Cumberland reporting a loss of $0.01 per share on revenue of $9.78 million. Cumberland EPS in the same period a year ago totaled $0.09. Revenue was $13.68 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.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 111.11%. Revenue would be down 28.5% 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 -0.07 0.03 0.02 0.01EPS Actual 0.02 0.08 0.01 0.09Revenue Estimate 8.61 M 9.27 M 9.46 M 11.34 MRevenue Actual 9.25 M 9.60 M 8.33 M 13.68 M

Stock Performance

Over the past 52-week period, shares of Cumberland have declined 26.28%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cumberland is scheduled to hold the call at 16:30:00 ET and can be accessed here.