Benzinga | Feb 15, 2021 10:42AM EST

Earnings Preview: CAI International

On Tuesday, February 16, CAI International (NYSE:CAI) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

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 CAI International management projections, analysts predict EPS of $1.13 on revenue of $82.14 million. In the same quarter last year, CAI International reported earnings per share of $0.54 on revenue of $103.42 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 report earnings in line when it publishes results Tuesday, quarterly profit would be up 109.26%. Sales would be down 20.58% from the year-ago period. CAI International's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.88 0.45 0.50 0.67EPS Actual 1.04 0.78 0.67 0.54Revenue Estimate 76.75 M 103.05 M 97.98 M 107.46 MRevenue Actual 79.05 M 75.72 M 105.02 M 103.42 M

Stock Performance

Over the last 52-week period, shares of CAI International are up 35.99%.

Do not be surprised to see the stock move on comments made during its conference call. CAI International is scheduled to hold the call at 17:00:00 ET and can be accessed here.