Build-A-Bear Workshop's Earnings: A Preview

Build-A-Bear Workshop BBW releases its next round of earnings this Thursday, December 03. Here is Benzinga's essential guide to Build-A-Bear Workshop's Q3 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

Analysts are predicting Build-A-Bear Workshop will report a loss of $0.04 per share on revenue of $72.93 million. Build-A-Bear Workshop's loss in the same period a year ago was $0.4 per share. Quarterly sales came in at $70.38 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Wall Street consensus estimate for earnings would represent a 90.0% increase for the company. Sales would be up 3.62% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Shares of Build-A-Bear Workshop were trading at $3.84 as of December 01. Over the last 52-week period, shares are up 33.79%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Build-A-Bear Workshop is scheduled to hold the call at 09:00:00 ET and can be accessed here.