Benzinga | Nov 10, 2020 10:07AM EST

Preview: Fossil Group's Earnings

Fossil Group (NASDAQ: FOSL) announces its next round of earnings this Wednesday, November 11. Here is Benzinga's everything-that-matters guide for this Wednesday's Q3 earnings announcement.

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

Sell-side analysts are expecting Fossil Group's loss per share to be near $0.73 on sales of $333.50 million. In the same quarter last year, Fossil Group announced EPS of $0.15 on revenue of $539.50 million.

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

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 analyst consensus estimate would represent a 386.67% decrease in the company's earnings. Revenue would have fallen 38.18% from the same quarter last year. Fossil Group's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -1.71 -1.51 0.79 0.09EPS Actual -0.28 -1.49 0.61 -0.15Revenue Estimate 182.10 M 381.30 M 724.65 M 553.46 MRevenue Actual 259.00 M 390.70 M 711.60 M 539.50 M

Stock Performance

Over the past 52-week period, shares of Fossil Group have declined 17.65%.

Do not be surprised to see the stock move on comments made during its conference call. Fossil Group is scheduled to hold the call at 17:00:00 ET and can be accessed here.