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Market Overview

LexinFintech Holdings's Earnings Outlook

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On Thursday, March 18, LexinFintech Holdings (NASDAQ:LX) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, 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

Based on LexinFintech Holdings management projections, analysts predict EPS of $0.43 on revenue of $646.75 million. LexinFintech Holdings EPS in the same period a year ago totaled $0.41. Revenue was $452.19 million.

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.

The Wall Street estimate would represent a 4.88% increase in the company's earnings. Sales would be up 43.03% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.27 0.33 0.09 4.27
EPS Actual 0.32 0.31 -0.46 0.41
Revenue Estimate 473.45 M 362.99 M 291.77 M 363.22 M
Revenue Actual 464.54 M 418.68 M 353.07 M 452.19 M

Stock Performance

Shares of LexinFintech Holdings were trading at $13.39 as of March 16. Over the last 52-week period, shares are up 55.41%. 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. LexinFintech Holdings is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings