On Tuesday, May 11, Kornit Digital (NASDAQ:KRNT) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
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
Kornit Digital EPS will likely be near $0.13 while revenue will be around $62.82 million, according to analysts. Kornit Digital reported a loss of $0.22 when it published results during the same quarter last year. Sales in that period totaled $26.21 million.
Why Analyst Estimates And Earnings Surprises Are Important
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 report earnings in line when it publishes results Tuesday, earnings would be up 159.09%. Revenue would be up 139.66% on a year-over-year basis. Kornit Digital's reported EPS has stacked up against analyst estimates in the past like this:
|Quarter||Q4 2021||Q3 2020||Q2 2020||Q1 2020|
|Revenue Estimate||62.01 M||55.14 M||33.18 M||26.92 M|
|Revenue Actual||72.29 M||57.39 M||37.44 M||26.21 M|
For a full 12 months, the return has risen by 192.44%. 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. Kornit Digital is scheduled to hold the call at 08:30:00 ET and can be accessed here.