Potbelly PBPB releases its next round of earnings this Thursday, March 11. Get the latest predictions in Benzinga's essential guide to the company's Q4 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
Wall Street expects an EPS loss of $0.39 and sales around $77.96 million. Potbelly EPS in the same period a year ago totaled $0.02. Revenue was $101.75 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 analyst consensus estimate would represent a 1850.0% decrease in the company's earnings. Revenue would be down 23.38% on a year-over-year basis. Potbelly's reported EPS has stacked up against analyst estimates in the past like this:
|Quarter||Q3 2020||Q2 2020||Q1 2020||Q4 2020|
|Revenue Estimate||79.88 M||65.14 M||89.64 M||99.94 M|
|Revenue Actual||72.66 M||56.16 M||87.59 M||101.75 M|
For a full 12 months, the return has risen by 84.19%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. Potbelly is scheduled to hold the call at 17:00:00 ET and can be accessed here.
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