On Wednesday, May 19, Vipshop Holdings VIPS will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
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 Vipshop Holdings management projections, analysts predict EPS of $0.37 on revenue of $4.34 billion. Vipshop Holdings reported a profit of $0.2 per share when it published results during the same quarter last year. Sales in that period totaled $2.65 billion.
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 match the consensus estimate, earnings would be up 85.0%. Revenue would be have grown 63.53% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.49 | 0.26 | 0.28 | 0.11 |
| EPS Actual | 0.57 | 0.30 | 0.27 | 0.20 |
| Revenue Estimate | 5.40 B | 3.26 B | 3.42 B | 2.54 B |
| Revenue Actual | 5.48 B | 3.41 B | 3.41 B | 2.65 B |
Stock Performance
Shares of Vipshop Holdings were trading at $24.31 as of May 17. Over the last 52-week period, shares are up 57.37%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Vipshop Holdings is scheduled to hold the call at 07:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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