A Preview Of Party City Holdco's Earnings
On Thursday, March 11, Party City Holdco (NYSE:PRTY) will release its latest earnings report. Here is Benzinga's outlook for the company.
Net Income, Earnings, 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
Party City Holdco EPS will likely be near $0.31 while revenue will be around $648.25 million, according to analysts. In the same quarter last year, Party City Holdco reported EPS of $0.51 on revenue of $731.55 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.
If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 39.22%. Sales would be down 11.39% from the same quarter last year. Party City Holdco's reported EPS has stacked up against analyst estimates in the past like this:
EPS Estimate | -0.32 | -0.56 | -0.19 | 0.88 |
EPS Actual | 0.10 | -0.66 | -0.28 | 0.51 |
Revenue Estimate | 489.28 M | 225.67 M | 445.17 M | 748.82 M |
Revenue Actual | 533.77 M | 254.69 M | 414.04 M | 731.55 M |
Stock Performance
For a full 12 months, the return has risen by 1267.54%. Given that these returns are generally positive, long-term shareholders are probably relaxed 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. Party City Holdco is scheduled to hold the call at 08:00:00 ET and can be accessed here.
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