Market Overview

LAIX Earnings Preview


On Thursday, November 26, LAIX (NYSE: LAIX) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

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

Wall Street analysts see LAIX reporting a loss of $0.4 per share on revenue of $36.57 million. In the same quarter last year, LAIX announced EPS of $0.61 on revenue of $36.67 million.

Why Analyst Estimates And Earnings Surprises Are Important

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, earnings would be up 34.43%. Sales would be down 0.27% on a year-over-year basis. Here is how the LAIX's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.51 -0.48 -2.83 -0.32
EPS Actual -0.27 -0.56 -0.60 -0.61
Revenue Estimate 36.92 M 29.25 M 251.85 M 34.76 M
Revenue Actual 38.13 M 32.25 M 33.24 M 36.67 M

Stock Performance

Shares of LAIX were trading at $1.8 as of November 24. Over the last 52-week period, shares are down 35.48%. 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. LAIX is scheduled to hold the call at 20:00:00 ET and can be accessed here.


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Posted-In: Earnings