Preview: Vera Bradley's Earnings

Vera Bradley VRA unveils its next round of earnings this Wednesday, June 09. Get prepared with Benzinga's ultimate preview for Vera Bradley's Q1 earnings.

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

Analysts covering Vera Bradley have modeled for quarterly EPS loss of $0.23 on revenue of $93.39 million. In the same quarter last year, Vera Bradley posted EPS of $0.31 on sales of $69.28 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

The analyst consensus estimate would represent a 25.81% increase in the company's earnings. Sales would be up 34.79% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Vera Bradley were trading at $13.02 as of June 07. Over the last 52-week period, shares are up 102.01%. 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. Vera Bradley is scheduled to hold the call at 09:30:00 ET and can be accessed here.