Earnings Preview: iMedia Brands

On Tuesday, May 25, iMedia Brands IMBI will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Wall Street analysts see iMedia Brands reporting a loss of $0.37 per share on revenue of $99.19 million. In the same quarter last year, iMedia Brands announced EPS of $0.77 on revenue of $95.83 million.

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

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.

If the company were to match the consensus estimate, earnings would be up 51.95%. Sales would be have grown 3.5% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 119.7%. Given that these returns are generally positive, long-term shareholders can relax 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. iMedia Brands is scheduled to hold the call at 08:30:00 ET and can be accessed here.