Benzinga | Nov 9, 2020 10:21AM EST

Preview: Kornit Digital's Earnings

Kornit Digital (NASDAQ: KRNT) will be releasing its next round of earnings this Tuesday, November 10. For all of the relevant information, here is your guide for Tuesday's Q3 earnings announcement.

Net Income, Earnings, 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

Kornit Digital EPS is expected to be around $0.13, according to sell-side analysts. Sales will likely be near $55.14 million. Kornit Digital reported a profit of $0.09 per share when it published results during the same quarter last year. Sales in that period totaled $44.58 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.

The Wall Street estimate would represent a 44.44% increase in the company's earnings. Revenue would be up 23.69% 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 -0.07 -0.09 0.18 0.18EPS Actual -0.03 -0.22 0.17 0.09Revenue Estimate 33.18 M 26.92 M 48.70 M 49.07 MRevenue Actual 37.44 M 26.21 M 48.65 M 44.58 M

Stock Performance

Over the last 52-week period, shares of Kornit Digital are up 107.33%.

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.