Stitch Fix's Earnings Outlook

Stitch Fix SFIX releases its next round of earnings this Monday, December 07. Here is Benzinga's essential guide to Stitch Fix's Q1 earnings report.

What Are Earnings, Net Income, 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

Stitch Fix's per-share loss will be near $0.2 on sales of $481.17 million, according to Wall Street analysts. Stitch Fix posted a break-even quarter on revenue of $444.81 million in the same quarter last year.

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 Wall Street estimate would represent no change in the company's earnings. Sales would be have grown 8.17% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Stitch Fix were trading at $38.06 as of December 03. Over the last 52-week period, shares are up 45.88%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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