Market Overview

Preview: LexinFintech Holdings's Earnings

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LexinFintech Holdings (NASDAQ: LX) unveils its next round of earnings this Tuesday, November 24. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

LexinFintech Holdings EPS will likely be near $0.27 while revenue will be around $471.98 million, according to analysts. In the same quarter last year, LexinFintech Holdings announced EPS of $0.54 on revenue of $446.02 million.

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.

The Wall Street estimate would represent a 50.0% decline in the company's earnings. Sales would be up 5.82% on a year-over-year basis. 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 2019
EPS Estimate 0.33 0.09 4.27 0.54
EPS Actual 0.31 -0.46 0.41 0.54
Revenue Estimate 362.99 M 291.77 M 363.22 M 340.80 M
Revenue Actual 418.68 M 353.07 M 452.19 M 446.02 M

Stock Performance

Shares of LexinFintech Holdings were trading at $7.89 as of November 20. Over the last 52-week period, shares are down 33.08%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. LexinFintech Holdings is scheduled to hold the call at 06:00:00 ET and can be accessed here.

 

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Posted-In: Earnings