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Market Overview

Earnings Preview: Fortress Transportation


On Thursday, February 25, Fortress Transportation (NYSE:FTAI) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Based on management's projections, Fortress Transportation analysts modeled for a loss of $0.32 per share on sales of $88.05 million. In the same quarter last year, Fortress Transportation posted EPS of $0.27 on sales of $161.33 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 analyst consensus estimate would represent a 218.52% decrease in the company's earnings. Revenue would be down 45.42% from the year-ago period. Fortress Transportation'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 -0.06 -0.26 0.12 0.42
EPS Actual -0.30 -0.18 -0.03 0.27
Revenue Estimate 101.88 M 93.14 M 137.88 M 146.99 M
Revenue Actual 83.71 M 94.31 M 112.84 M 161.33 M

Stock Performance

Shares of Fortress Transportation were trading at $27.37 as of February 23. Over the last 52-week period, shares are up 49.39%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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


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Posted-In: BZI-EPEarnings