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Market Overview

A Preview Of Echo Global Logistics's Earnings

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On Wednesday, February 03, Echo Global Logistics (NASDAQ:ECHO) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

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

Sell-side analysts expect Echo Global Logistics's EPS to be near $0.43 on sales of $703.49 million. In the same quarter last year, Echo Global Logistics reported earnings per share of $0.26 on sales of $531.68 million.

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

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 Wednesday, earnings would be up 65.38%. Revenue would be up 32.32% from the year-ago period. Echo Global Logistics's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.29 0.11 0.20 0.25
EPS Actual 0.40 0.19 0.19 0.26
Revenue Estimate 604.58 M 470.16 M 550.88 M 521.38 M
Revenue Actual 691.50 M 514.72 M 551.05 M 531.68 M

Stock Performance

Shares of Echo Global Logistics were trading at $26.92 as of February 01. Over the last 52-week period, shares are up 31.61%. Given that these returns are generally positive, long-term shareholders should be content 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: BZI-EPEarnings