Benzinga | Feb 15, 2021 10:32AM EST

Kornit Digital Earnings Preview

Kornit Digital (NASDAQ:KRNT) unveils its next round of earnings this Tuesday, February 16. Get prepared with Benzinga's ultimate preview for Kornit Digital's Q4 earnings.

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

Sell-side analysts expect Kornit Digital's EPS to be near $0.22 on sales of $62.01 million. In the same quarter last year, Kornit Digital reported EPS of $0.17 on revenue of $48.65 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.

If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 29.41%. Sales would be up 27.46% from the same quarter last year. Kornit Digital's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.13 -0.07 -0.09 0.18EPS Actual 0.18 -0.03 -0.22 0.17Revenue Estimate 55.14 M 33.18 M 26.92 M 48.70 MRevenue Actual 57.39 M 37.44 M 26.21 M 48.65 M

Stock Performance

Shares of Kornit Digital were trading at $96.75 as of February 11. Over the last 52-week period, shares are up 123.46%. 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. Kornit Digital is scheduled to hold the call at 17:00:00 ET and can be accessed here.