Benzinga | Oct 30, 2020 11:13AM EDT

Earnings Preview for Kforce

Kforce (NASDAQ: KFRC) announces its next round of earnings this Monday, November 02. Here is Benzinga's everything-that-matters guide for this Monday's Q3 earnings announcement.

Net Income, Earnings, 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

Analysts predict Kforce will report earnings of $0.81 per share on revenue of $360.59 million. In the same quarter last year, Kforce reported EPS of $0.68 on revenue of $345.56 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 Wall Street estimate would represent a 19.12% increase in the company's earnings. Revenue would be have grown 4.35% 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 Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.31 0.37 0.67 0.67EPS Actual 0.47 0.42 0.66 0.68Revenue Estimate 313.80 M 327.42 M 339.50 M 340.17 MRevenue Actual 343.02 M 335.21 M 336.23 M 345.56 M

Stock Performance

Shares of Kforce were trading at $34.89 as of October 29. Over the last 52-week period, shares are down 16.55%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

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