Benzinga | Oct 27, 2020 10:13AM EDT

Cimpress's Earnings: A Preview

Cimpress (NASDAQ: CMPR) unveils its next round of earnings this Wednesday, October 28. Here is Benzinga's everything-that-matters guide for the 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

Wall Street analysts see Cimpress reporting earnings of $0.35 per share on revenue of $597.75 million. In the same quarter last year, Cimpress reported earnings per share of $0.66 on revenue of $633.96 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 consensus estimate for earnings would represent a 46.97% decrease for the company. Sales would be down 5.71% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019EPS Estimate -1.24 0.77 2.24 0.11EPS Actual -1.62 0.61 2.73 0.66Revenue Estimate 420.70 M 636.23 M 844.00 M 629.97 MRevenue Actual 429.11 M 597.96 M 820.33 M 633.96 M

Stock Performance

Shares of Cimpress were trading at $80.7 as of October 26. Over the last 52-week period, shares are down 36.74%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

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