Market Overview

Earnings Outlook for Purple Innovation

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Purple Innovation (NASDAQ: PRPL) unveils its next round of earnings this Wednesday, November 11. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, 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

Purple Innovation earnings will be near $0.24 per share on sales of $175.46 million, according to analysts. In the same quarter last year, Purple Innovation announced EPS of $0.16 on revenue of $117.41 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 consensus estimate for earnings would represent a 50.0% increase for the company. Revenue would be up 49.45% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.19 0.05 0.04 0.02
EPS Actual -0.11 0.11 -0.29 0.16
Revenue Estimate 175.88 M 106.97 M 119.52 M 105.29 M
Revenue Actual 165.10 M 122.38 M 124.30 M 117.41 M

Stock Performance

Over the last 52-week period, shares are up 283.03%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

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

 

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Posted-In: Earnings