Rush Enterprises's Earnings Outlook

Rush Enterprises RUSHA releases its next round of earnings this Wednesday, February 10. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

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

Analysts predict Rush Enterprises will report earnings of $0.54 per share on revenue of $1.21 billion. In the same quarter last year, Rush Enterprises announced EPS of $0.64 on revenue of $1.32 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 match the consensus estimate, earnings would be down 15.62%. Sales would have fallen 8.19% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Rush Enterprises were trading at $43.88 as of February 08. Over the last 52-week period, shares are up 42.79%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Rush Enterprises is scheduled to hold the call at 10:00:00 ET and can be accessed here.