Benzinga | Dec 7, 2020 10:08AM EST

Barnes & Noble Education's Earnings Outlook

Barnes & Noble Education (NYSE:BNED) announces its next round of earnings this Tuesday, December 08. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 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

Based on Barnes & Noble Education management projections, analysts predict EPS of $0.46 on revenue of $522.59 million. In the same quarter last year, Barnes & Noble Education posted EPS of $0.78 on sales of $772.23 million.

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.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 158.97%. Revenue would have fallen 32.33% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019EPS Estimate -0.78 -0.48 -0.16 0.95EPS Actual -0.96 -0.58 -0.02 0.78Revenue Estimate 220.53 M 220.54 M 506.25 M 773.79 MRevenue Actual 204.01 M 256.89 M 502.29 M 772.23 M

Stock Performance

Shares of Barnes & Noble Education were trading at $3.52 as of December 04. Over the last 52-week period, shares are down 18.99%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

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