Traders watch earnings releases closely, as changes in a company’s performance can be a good indication whether a company is on the right track, or headed the wrong way.

KIT digital, Inc. (KITD) is scheduled to release its earnings results Thursday. The company currently has an earnings per share ratio (EPS trailing twelve months) of -1.61 and investors are hoping to see that number change. Let’s take a look at the performance of the stock since its previous earnings release.

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In the past three months, the stock has posted a 47.82% gain in terms of stock price. Over the same period, the Entertainment - Diversified industry group has returned a combined 21.05% gain.

So the eyes of investors turn to this new round of earnings.

Now, good earnings don’t always lead to higher stock prices, but keeping up on earnings is still a vital part of your fundamental stock analysis. Also note that companies often change earnings dates, so you should double-check them often.

When looking at earnings, it’s very helpful to see how stocks compare to others in its industry group. And even though two stocks may not be direct competitors, many analysts and institutional investors still compare them and evaluate them relative to other stocks in their group.  

KITD is in the Entertainment - Diversified industry group where it competes for investor dollars with companies like Shanda Games Limited (GAME), which is set to release its earnings on 11/30 and last reported a 75.30% gain in quarter-over-quarter EPS.

Another industry peer, CKX Inc. (CKXE) released its earnings on 11/03 and last reported a -65.20% decline in QOQ EPS.

Walt Disney Co. (DIS) is the stock with the biggest market cap in the Entertainment - Diversified industry at $56.13B. It closed yesterday at $30.87

To better understand how to evaluate earnings announcements and the affect they have on your portfolio, be sure to read Earnings Announcements and EPS.

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