Benzinga | Apr 13, 2021 10:29AM EDT

Hooker Furniture's Earnings Outlook

Hooker Furniture (NASDAQ:HOFT) announces its next round of earnings this Wednesday, April 14. Here is Benzinga's look at Hooker Furniture'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

Based on Hooker Furniture management projections, analysts predict EPS of $0.75 on revenue of $149.67 million. Hooker Furniture reported a per-share profit of $0.59 when it published results during the same quarter last year. Sales in that period totaled $164.88 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.

The analyst consensus estimate would represent a 27.12% increase in the company's EPS figure. Revenue would be down 9.23% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.60 0.34 0.02 0.55EPS Actual 0.84 0.48 -0.09 0.59Revenue Estimate 159.09 M 153.17 M 105.58 M 163.72 MRevenue Actual 149.69 M 130.54 M 104.60 M 164.88 M

Stock Performance

For a full 12 months, the return has risen by 155.7%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Hooker Furniture is scheduled to hold the call at 09:00:00 ET and can be accessed here.