Benzinga | Nov 18, 2020 10:06AM EST

Earnings Preview for Delta Apparel

Delta Apparel (AMEX: DLA) unveils its next round of earnings this Thursday, November 19. Get prepared with Benzinga's ultimate preview for Delta Apparel's Q4 earnings.

What Are Earnings, Net Income, 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

Wall Street analysts see Delta Apparel reporting earnings of $0.55 per share on revenue of $116.60 million. In the same quarter last year, Delta Apparel announced EPS of $0.5 on revenue of $107.96 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.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 10.0%. Sales would be up 8.01% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019EPS Estimate -3.45 0.38 0.08 0.48EPS Actual -0.01 0.19 0.13 0.50Revenue Estimate 72.10 M 108.90 M 95.16 M 108.06 MRevenue Actual 71.80 M 96.66 M 95.89 M 107.96 M

Stock Performance

Shares of Delta Apparel were trading at $18.59 as of November 17. Over the last 52-week period, shares are down 30.28%. 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. Delta Apparel is scheduled to hold the call at 16:30:00 ET and can be accessed here.