Benzinga | Jun 8, 2021 10:34AM EDT

Preview: Lovesac's Earnings

On Wednesday, June 09, Lovesac (NASDAQ:LOVE) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings 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 Lovesac have modeled for quarterly EPS loss of $0.58 on revenue of $75.06 million. In the same quarter last year, Lovesac posted EPS of $0.58 on sales of $54.37 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 estimate would represent no change in the company's earnings. Revenue would be up 38.05% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.58 -0.88 -0.48 -0.67EPS Actual 1.37 0.16 -0.08 -0.58Revenue Estimate 116.13 M 66.14 M 52.35 M 47.20 MRevenue Actual 129.68 M 74.74 M 61.95 M 54.37 M

Stock Performance

Shares of Lovesac were trading at $83.79 as of June 07. Over the last 52-week period, shares are up 298.97%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

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