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Preview: Lannett's Earnings

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On Wednesday, February 03, Lannett (NYSE:LCI) will release its latest earnings report. Here is Benzinga's outlook for the company.

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

Analysts predict Lannett will report earnings of $0.08 per share on revenue of $130.00 million. In the same quarter last year, Lannett announced EPS of $0.27 on revenue of $136.11 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 analyst consensus estimate would represent a 70.37% decline in the company's EPS figure. Revenue would have fallen 4.49% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.10 0.29 0.29 0.27
EPS Actual 0.06 0.31 0.27 0.27
Revenue Estimate 128.96 M 134.26 M 134.52 M 128.60 M
Revenue Actual 126.48 M 137.92 M 144.37 M 136.11 M

Stock Performance

Shares of Lannett were trading at $7.42 as of February 01. Over the last 52-week period, shares are down 15.98%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lannett is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings