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Market Overview

A Preview Of Capri Holdings's Earnings


Capri Holdings (NYSE:CPRI) unveils its next round of earnings this Wednesday, February 03. Get prepared with Benzinga's ultimate preview for Capri Holdings's Q3 earnings.

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

Capri Holdings EPS will likely be near $1.01 while revenue will be around $1.33 billion, according to analysts. Capri Holdings reported a profit of $1.66 per share when it published results during the same quarter last year. Sales in that period totaled $1.57 billion.

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.

If the company were to match the consensus estimate when it reports Wednesday, EPS would have fallen 39.16%. Revenue would have fallen 15.34% 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 2020
EPS Estimate 0.01 -1.08 0.14 1.59
EPS Actual 0.90 -1.04 0.11 1.66
Revenue Estimate 916.22 M 431.86 M 1.12 B 1.54 B
Revenue Actual 1.11 B 451.00 M 1.19 B 1.57 B

Stock Performance

Shares of Capri Holdings were trading at $41.65 as of February 01. Over the last 52-week period, shares are up 26.67%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Capri Holdings is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings