Benzinga | Feb 3, 2021 10:08AM EST

Earnings Outlook for Knowles

Knowles (NYSE:KN) will be releasing its next round of earnings this Thursday, February 04. For all of the relevant information, here is your guide for Thursday'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

Wall Street analysts see Knowles reporting earnings of $0.37 per share on sales of $239.98 million. Knowles EPS in the same period a year ago totaled $0.35. Sales were $233.90 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 5.71% increase in the company's earnings. Sales would be up 2.6% 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 2020EPS Estimate 0.23 0.01 0.02 0.40EPS Actual 0.24 -0.01 0.03 0.35Revenue Estimate 200.65 M 146.61 M 162.42 M 237.61 MRevenue Actual 205.80 M 152.20 M 163.10 M 233.90 M

Stock Performance

Shares of Knowles were trading at $20.19 as of February 02. Over the last 52-week period, shares are up 27.49%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Knowles is scheduled to hold the call at 16:30:00 ET and can be accessed here.