Earnings Outlook For Build-A-Bear Workshop

On Wednesday, May 26, Build-A-Bear Workshop BBW will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Build-A-Bear Workshop EPS loss is expected to be around $0.53, according to sell-side analysts. Sales will likely be near $42.95 million. In the same quarter last year, Build-A-Bear Workshop reported a loss per share of $0.83 on sales of $46.62 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 Wall Street estimate would represent a 36.14% increase in the company's earnings. Sales would be down 7.88% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares of Build-A-Bear Workshop are up 363.64%.

Do not be surprised to see the stock move on comments made during its conference call. Build-A-Bear Workshop is scheduled to hold the call at 09:00:00 ET and can be accessed here.