Earnings Preview: Blueknight Energy

On Tuesday, March 09, Blueknight Energy BKEP will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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, Blueknight Energy analysts model for earnings of $0.06 per share on sales of $83.40 million. Blueknight Energy reported a loss of $0.05 when it published results during the same quarter last year. Sales in that period totaled $91.51 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.

The analyst consensus estimate would represent a 220.0% increase in the company's EPS figure. Sales would have fallen 8.86% from the same quarter last year. Blueknight Energy's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Blueknight Energy were trading at $2.39 as of March 05. Over the last 52-week period, shares are up 166.67%. 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. Blueknight Energy is scheduled to hold the call at 11:00:00 ET and can be accessed here.