Benzinga | Nov 9, 2020 10:28AM EST

Cumberland's Earnings: A Preview

Cumberland (NASDAQ: CPIX) unveils its next round of earnings this Tuesday, November 10. Get prepared with Benzinga's ultimate preview for Cumberland's Q3 earnings.

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 covering Cumberland have modeled for quarterly EPS loss of $0.07 on revenue of $8.61 million. In the same quarter last year, Cumberland reported EPS of $0.01 on revenue of $10.37 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 a 800.0% decline in the company's earnings. Sales would be down 16.99% from the same quarter last year. Cumberland's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.03 0.02 0.01 0.11EPS Actual 0.08 0.01 0.09 0.01Revenue Estimate 9.27 M 9.46 M 11.34 M 12.65 MRevenue Actual 9.60 M 8.33 M 13.68 M 10.37 M

Stock Performance

Over the last 52-week period, shares are down 47.25%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

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