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Market Overview

Farfetch's Earnings: A Preview


Farfetch (NYSE:FTCH) releases its next round of earnings this Thursday, February 25. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

Based on Farfetch management projections, analysts predict EPS of $0.34 on revenue of $518.06 million. In the same quarter last year, Farfetch announced EPS of $0.08 on revenue of $382.23 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.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be down 325.0%. Sales would be up 35.54% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.40 -0.35 -0.33 -0.25
EPS Actual -0.17 -0.20 -0.24 -0.08
Revenue Estimate 367.12 M 326.92 M 313.95 M 340.50 M
Revenue Actual 437.70 M 364.68 M 331.44 M 382.23 M

Stock Performance

Shares of Farfetch were trading at $66.5 as of February 23. Over the last 52-week period, shares are up 581.91%. 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. Farfetch is scheduled to hold the call at 16:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings