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Market Overview

Forward Air's Earnings: A Preview

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On Thursday, February 11, Forward Air (NASDAQ:FWRD) will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, 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

Analysts covering Forward Air modeled for quarterly EPS of $0.73 on revenue of $344.08 million. In the same quarter last year, Forward Air announced EPS of $0.85 on revenue of $381.50 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.

The Wall Street estimate would represent a 14.12% decline in the company's earnings. Revenue would be down 9.81% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.43 0.08 0.41 0.93
EPS Actual 0.61 0.33 0.30 0.85
Revenue Estimate 323.00 M 268.56 M 344.24 M 385.50 M
Revenue Actual 332.00 M 281.68 M 342.51 M 381.50 M

Stock Performance

Shares of Forward Air were trading at $83.51 as of February 09. Over the last 52-week period, shares are up 33.7%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Forward Air is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings