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Market Overview

Earnings Preview: Lululemon Athletica


Lululemon Athletica (NASDAQ:LULU) announces its next round of earnings this Tuesday, March 30. Here is Benzinga's everything-that-matters guide for this Tuesday's Q4 earnings announcement.

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

Wall Street analysts see Lululemon Athletica reporting earnings of $2.49 per share on sales of $1.66 billion. In the same quarter last year, Lululemon Athletica reported earnings per share of $2.28 on sales of $1.40 billion.

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 9.21% increase in the company's earnings. Revenue would be have grown 18.83% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.88 0.55 0.25 2.24
EPS Actual 1.16 0.74 0.22 2.28
Revenue Estimate 1.02 B 842.49 M 678.75 M 1.38 B
Revenue Actual 1.12 B 902.94 M 651.96 M 1.40 B

eps graph

Stock Performance

Over the last 52-week period, shares are up 66.07%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lululemon Athletica is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings