Benzinga | May 25, 2021 10:46AM EDT

Earnings Preview: Capri Holdings

Capri Holdings (NYSE:CPRI) releases its next round of earnings this Wednesday, May 26. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

Analysts expect Capri Holdings earnings of $0.02 per share. Revenue will likely be around $1.02 billion, according to the consensus estimate. Capri Holdings reported a profit of $0.11 per share when it published results during the same quarter last year. Sales in that period totaled $1.19 billion.

Why Analyst Estimates And Earnings Surprises Are Important

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 report earnings in line when it publishes results Wednesday, earnings would be down 81.82%. Sales would be down 14.43% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q3 2021 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.01 0.01 -1.08 0.14EPS Actual 1.65 0.90 -1.04 0.11Revenue Estimate 1.33 B 916.22 M 431.86 M 1.12 BRevenue Actual 1.30 B 1.11 B 451.00 M 1.19 B

Stock Performance

Shares of Capri Holdings were trading at $53.15 as of May 24. Over the last 52-week period, shares are up 207.0%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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