Analysts Estimate Lovesac (LOVE) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates a year-over-year decline in Lovesac's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Lovesac is expected to report a quarterly loss of $0.99 per share, reflecting a significant year-over-year change of -253.6% [3]. - Revenue projections stand at $128.2 million, indicating a decrease of 9.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 16.67% over the past 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.57% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [6][7]. - A combination of a positive Earnings ESP and a strong Zacks Rank (1-3) typically results in a positive surprise nearly 70% of the time [8]. Historical Performance - In the last reported quarter, Lovesac was expected to post earnings of $1.93 per share but delivered $1.87, resulting in a surprise of -3.11% [12]. - Over the last four quarters, the company has beaten consensus EPS estimates twice [13]. Conclusion - Lovesac does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].