Benzinga | Feb 1, 2021 10:13AM EST

A Preview Of ArcBest's Earnings

ArcBest (NASDAQ:ARCB) releases its next round of earnings this Tuesday, February 02. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

Analysts covering ArcBest modeled for quarterly EPS of $0.92 on revenue of $800.21 million. ArcBest EPS in the same period a year ago totaled $0.56. Revenue was $717.42 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 Tuesday, earnings would be up 64.29%. Revenue would be up 11.54% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.79 -0.01 -0.11 0.44EPS Actual 1.22 0.67 0.36 0.56Revenue Estimate 774.39 M 641.55 M 706.02 M 724.24 MRevenue Actual 794.98 M 627.37 M 701.40 M 717.42 M

Stock Performance

Shares of ArcBest were trading at $46.35 as of January 29. Over the last 52-week period, shares are up 105.13%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. ArcBest is scheduled to hold the call at 09:30:00 ET and can be accessed here.