Benzinga | May 26, 2021 10:22AM EDT

Earnings Preview: Ollie's Bargain Outlet

Ollie's Bargain Outlet (NASDAQ:OLLI) unveils its next round of earnings this Thursday, May 27. Here is Benzinga's everything-that-matters guide for the earnings announcement.

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 expect Ollie's Bargain Outlet earnings of $0.63 per share. Revenue will likely be around $422.07 million, according to the consensus estimate. In the same quarter last year, Ollie's Bargain Outlet posted EPS of $0.49 on sales of $349.36 million.

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 post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 28.57%. Revenue would be up 20.81% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.85 0.58 0.90 0.31EPS Actual 0.97 0.65 1.04 0.49Revenue Estimate 488.37 M 406.06 M 513.97 M 315.02 MRevenue Actual 515.76 M 414.38 M 529.31 M 349.36 M

Stock Performance

Shares of Ollie's Bargain Outlet were trading at $79.32 as of May 25. Over the last 52-week period, shares are down 8.09%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ollie's Bargain Outlet is scheduled to hold the call at 16:30:00 ET and can be accessed here.