Benzinga | Mar 10, 2021 10:05AM EST

Zumiez Earnings Preview

Zumiez (NASDAQ:ZUMZ) announces its next round of earnings this Thursday, March 11. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

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 Zumiez reporting earnings of $1.63 per share on sales of $327.27 million. In the same quarter last year, Zumiez reported EPS of $1.48 on revenue of $328.75 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Thursday, quarterly profit would be up 10.14%. Revenue would be down 0.45% on a year-over-year basis. 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 0.76 0.33 -0.43 1.36EPS Actual 1.16 1.01 -0.79 1.48Revenue Estimate 246.20 M 234.21 165.35 M 325.19 MRevenue Actual 270.95 M 250.39 M 137.77 M 328.75 M

Stock Performance

Shares of Zumiez were trading at $47.7 as of March 09. Over the last 52-week period, shares are up 162.96%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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