The RealReal (REAL) Expected to Beat Earnings Estimates: What to Know Ahead of Q3 Release

Core Viewpoint - The RealReal (REAL) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2025, with actual results being crucial for stock price movement [1][2]. Financial Performance Expectations - The company is expected to post a quarterly loss of $0.14 per share, reflecting a year-over-year change of -55.6% [3]. - Revenues are projected to reach $168.47 million, representing a 14% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 8.33% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for The RealReal is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.70%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP reading indicates a likely earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - The RealReal currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a higher probability of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, The RealReal was expected to post a loss of $0.15 per share but actually reported a loss of -$0.13, resulting in a positive surprise of +13.33% [13]. - Over the past four quarters, the company has exceeded consensus EPS estimates two times [14]. Industry Context - In the broader context of the Zacks Consumer Products - Discretionary industry, Interparfums (IPAR) is expected to report earnings of $1.85 per share for the same quarter, indicating a year-over-year change of -4.2% [18]. - Interparfums' revenue is expected to be $430.01 million, up 1.3% from the previous year, but it has an Earnings ESP of -8.11%, complicating predictions for an earnings beat [19][20].