Benzinga | Oct 28, 2020 10:12AM EDT

A Preview Of Ethan Allen Interiors's Earnings

Ethan Allen Interiors (NYSE: ETH) releases its next round of earnings this Thursday, October 29. Here is Benzinga's essential guide to Ethan Allen Interiors's Q1 earnings report.

Net Income, Earnings, 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

Ethan Allen Interiors earnings will be near $0.22 per share on sales of $144.32 million, according to analysts. In the same quarter last year, Ethan Allen Interiors posted EPS of $0.35 on sales of $173.92 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

The analyst consensus estimate would represent a 37.14% decrease in the company's earnings. Revenue would be down 17.02% from the year-ago period. Ethan Allen Interiors's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019EPS Estimate -0.54 0.06 0.26 0.33EPS Actual -0.15 0.02 0.27 0.35Revenue Estimate 95.17 M 152.09 M 174.65 M 176.88 MRevenue Actual 91.57 M 149.77 M 174.57 M 173.92 M

Stock Performance

Over the past 52-week period, shares of Ethan Allen Interiors have declined 15.32%. 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. Ethan Allen Interiors is scheduled to hold the call at 17:00:00 ET and can be accessed here.