Benzinga | Dec 7, 2020 10:04AM EST

Earnings Outlook For G-III Apparel Group

On Tuesday, December 08, G-III Apparel Group (NASDAQ:GIII) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Based on G-III Apparel Group management projections, analysts predict EPS of $0.77 on revenue of $768.16 million. G-III Apparel Group reported a per-share profit of $1.99 when it published results during the same quarter last year. Sales in that period totaled $1.13 billion.

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 match the consensus estimate, earnings would be down 61.31%. Revenue would be down 31.9% on a year-over-year basis. Here is how the G-III Apparel Group's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.77 -0.51 0.67 1.94EPS Actual -0.01 -0.75 0.75 1.99Revenue Estimate 327.39 M 466.87 M 787.09 M 1.17 BRevenue Actual 297.21 M 405.13 M 754.62 M 1.13 B

Stock Performance

Shares of G-III Apparel Group were trading at $24.48 as of December 04. Over the last 52-week period, shares are down 19.28%. 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. G-III Apparel Group is scheduled to hold the call at 08:30:00 ET and can be accessed here.