Cumberland (NASDAQ:CPIX) announces its next round of earnings this Tuesday, May 11. Here is Benzinga's look at Cumberland'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
Based on Cumberland management projections, analysts predict EPS of $0.07 on revenue of $8.50 million. Cumberland reported a profit of $0.01 per share when it published results during the same quarter last year. Sales in that period totaled $8.33 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 800.0% decrease in the company's earnings. Sales would be up 2.03% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
|Quarter||Q4 2021||Q3 2020||Q2 2020||Q1 2020|
|Revenue Estimate||9.78 M||8.61 M||9.27 M||9.46 M|
|Revenue Actual||10.26 M||9.25 M||9.60 M||8.33 M|
Over the past 52-week period, shares of Cumberland have declined 31.48%.
Do not be surprised to see the stock move on comments made during its conference call. Cumberland is scheduled to hold the call at 16:30:00 ET and can be accessed here.