Market Overview

Preview: Knight-Swift's Earnings


Knight-Swift (NYSE: KNX) unveils its next round of earnings this Wednesday, October 21. Here is Benzinga's everything-that-matters guide for the earnings announcement.

The Definitions of Net Income, Earnings and Earnings Per Share (EPS)

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 expects EPS of $0.62 and sales around $1.16 billion. Knight-Swift earnings in the same period a year ago was $0.48 per share. Quarterly sales came in at $1.20 billion.

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

Wall Street analysts who study this company will publish analyst estimates of its revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates," and these consensus estimates can have a significant effect on a company's performance when it releases earnings. When a company posts earnings or revenue above or below the consensus estimate, it has posted an "earnings surprise."

If the company were to match the consensus estimate when it reports Wednesday, earnings would be up 29.17%. Revenue would have fallen 3.41% from the same quarter last year. Here is how the Knight-Swift's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.35 0.35 0.52 0.49
EPS Actual 0.57 0.44 0.55 0.48
Revenue Estimate 1.06 B 1.09 B 1.22 B 1.23 B
Revenue Actual 1.06 B 1.12 B 1.20 B 1.20 B

Stock Performance

Over the last 52-week period, shares are up 3.52%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Knight-Swift is scheduled to hold the call at 08:00:00 ET and can be accessed here:


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Posted-In: Earnings