Benzinga | Oct 23, 2020 10:09AM EDT

Preview: Knoll's Earnings

On Monday, October 26, Knoll (NYSE: KNL) will report its last quarter's earnings. Here is Benzinga's preview of the company's 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

Wall Street analysts see Knoll reporting earnings of $0.2 per share on sales of $281.47 million. In the same quarter last year, Knoll reported EPS of $0.55 on revenue of $356.50 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.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 63.64%. Sales would be down 21.05% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.06 0.34 0.63 0.50EPS Actual 0.19 0.40 0.52 0.55Revenue Estimate 248.19 M 340.60 M 391.82 M 352.77 MRevenue Actual 274.10 M 340.00 M 371.40 M 356.50 M

Stock Performance

Over the past 52-week period, shares of Knoll have declined 48.92%.

Do not be surprised to see the stock move on comments made during its conference call. Knoll is scheduled to hold the call at 17:30:00 ET and can be accessed here.