Benzinga | Mar 17, 2021 10:39AM EDT

Signet Jewelers's Earnings Outlook

On Thursday, March 18, Signet Jewelers (NYSE:SIG) 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

Analysts covering Signet Jewelers modeled for quarterly EPS of $3.54 on revenue of $2.10 billion. In the same quarter last year, Signet Jewelers posted EPS of $3.67 on sales of $2.15 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 analyst consensus estimate would represent a 3.54% decrease in the company's earnings. Sales would be down 2.46% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.66 -2.07 -2.87 3.47EPS Actual 0.11 -1.13 -1.59 3.67Revenue Estimate 1.14 B 788.51 M 879.49 M 2.12 BRevenue Actual 1.30 B 888.00 M 852.10 M 2.15 B

Stock Performance

Shares of Signet Jewelers were trading at $59.89 as of March 16. Over the last 52-week period, shares are up 584.78%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Signet Jewelers is scheduled to hold the call at 08:30:00 ET and can be accessed here.