Benzinga | Mar 15, 2021 11:47AM EDT

Designer Brands Earnings Preview

On Tuesday, March 16, Designer Brands (NYSE:DBI) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Based on management's projections, Designer Brands analysts modeled for a loss of $0.68 per share on sales of $623.77 million. Designer Brands's loss in the same period a year ago was $0.05 per share. Quarterly sales came in at $829.62 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 post earnings in line with the consensus estimate when it reports Tuesday, EPS would be down 1260.0%. Revenue would have fallen 24.81% 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 -0.48 -0.85 -0.60 -0.06EPS Actual -0.26 -1.28 -1.83 -0.05Revenue Estimate 650.63 M 596.46 M 481.16 M 841.63 MRevenue Actual 652.87 M 489.71 M 482.78 M 829.62 M

Stock Performance

Shares of Designer Brands were trading at $15.36 as of March 12. Over the last 52-week period, shares are up 285.54%. 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. Designer Brands is scheduled to hold the call at 08:30:00 ET and can be accessed here.