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Echo Global Logistics Earnings Preview

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Echo Global Logistics (NASDAQ: ECHO) announces its next round of earnings this Wednesday, October 28. Here is Benzinga's everything-that-matters guide for this Wednesday's Q3 earnings announcement.

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

Wall Street analysts see Echo Global Logistics reporting earnings of $0.29 per share on sales of $604.58 million. In the same quarter last year, Echo Global Logistics reported EPS of $0.39 on revenue of $561.44 million.

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

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 25.64%. Sales would be up 7.68% from the same quarter last year. Echo Global Logistics's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.11 0.20 0.25 0.37
EPS Actual 0.19 0.19 0.26 0.39
Revenue Estimate 470.16 M 550.88 M 521.38 M 548.11 M
Revenue Actual 514.72 M 551.05 M 531.68 M 561.44 M

Stock Performance

Shares of Echo Global Logistics were trading at $27.47 as of October 26. Over the last 52-week period, shares are up 34.53%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Echo Global Logistics is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings