Benzinga | May 26, 2021 10:26AM EDT

Preview: Guess?'s Earnings

Guess? (NYSE:GES) announces its next round of earnings this Thursday, May 27. Here is Benzinga's look at Guess?'s Q1 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Guess? EPS will likely be near $0.19 while revenue will be around $497.44 million, according to analysts. Guess? reported a per-share loss of $1.81 when it published results during the same quarter last year. Sales in that period totaled $260.25 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.

The Wall Street consensus estimate for earnings would represent a 89.5% increase for the company. Sales would be up 91.14% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.56 0.05 -0.57 -0.88EPS Actual 1.18 0.58 -0.01 -1.81Revenue Estimate 659.93 M 515.58 M 384.82 M 312.09 MRevenue Actual 648.46 M 569.28 M 398.54 M 260.25 M

Stock Performance

Shares of Guess? were trading at $27.75 as of May 25. Over the last 52-week period, shares are up 188.18%. 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. Guess? is scheduled to hold the call at 16:45:00 ET and can be accessed here.