Benzinga | Mar 15, 2021 11:44AM EDT

Preview: Caleres's Earnings

Caleres (NYSE:CAL) releases its next round of earnings this Tuesday, March 16. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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 Caleres reporting a quarterly loss of $0.1 per share on sales of $555.50 million. Caleres EPS in the same period a year ago totaled $0.34. Sales were $698.95 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 match the consensus estimate when it reports Tuesday, EPS would have fallen 129.41%. Sales would be down 20.52% 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 0.04 -1.12 -0.55 0.40EPS Actual 0.48 -0.57 -1.30 0.34Revenue Estimate 619.50 M 450.11 M 570.06 M 711.11 MRevenue Actual 647.48 M 501.45 M 397.18 M 698.95 M

Stock Performance

Shares of Caleres were trading at $18.65 as of March 12. Over the last 52-week period, shares are up 471.34%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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