XPO Logistics's Earnings Outlook

XPO Logistics XPO announces its next round of earnings this Monday, May 03. Here is Benzinga's look at XPO Logistics's Q1 earnings report.

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 XPO Logistics reporting earnings of $0.97 per share on sales of $4.33 billion. XPO Logistics EPS in the same period a year ago totaled $0.47. Sales were $3.86 billion.

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 match the consensus estimate when it reports Monday, EPS would be up 106.38%. Revenue would be up 12.06% from the same quarter last year. XPO Logistics's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of XPO Logistics were trading at $139.85 as of April 29. Over the last 52-week period, shares are up 119.36%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. XPO Logistics is scheduled to hold the call at 08:30:00 ET and can be accessed here.