A Preview Of Knoll's Earnings

Knoll KNL announces its next round of earnings this Wednesday, February 10. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

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

Based on management's projections, Knoll analysts model for earnings of $0.27 per share on sales of $300.53 million. Knoll reported a profit of $0.52 per share when it published results during the same quarter last year. Sales in that period totaled $371.40 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 match the consensus estimate when it reports Wednesday, EPS would have fallen 48.08%. Revenue would be down 19.08% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Knoll were trading at $16.61 as of February 05. Over the last 52-week period, shares are down 36.48%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Knoll is scheduled to hold the call at 17:30:00 ET and can be accessed here.