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Market Overview

Earnings Preview for Lumentum Holdings


Lumentum Holdings (NASDAQ:LITE) will be releasing its next round of earnings this Wednesday, May 12. For all of the relevant information, here is your guide for Wednesday's Q3 earnings announcement.

Net Income, Earnings, 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

Sell-side analysts expect Lumentum Holdings's EPS to be near $1.4 on sales of $433.49 million. In the same quarter last year, Lumentum Holdings reported EPS of $1.26 on revenue of $402.80 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 Wall Street consensus estimate for earnings would represent a 11.11% increase for the company. Revenue would be have grown 7.62% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2021 Q1 2020 Q4 2020 Q3 2020
EPS Estimate 1.90 1.47 0.82 1.05
EPS Actual 1.99 1.78 1.18 1.26
Revenue Estimate 480.68 M 441.82 M 349.21 M 409.09 M
Revenue Actual 478.80 M 452.40 M 368.10 M 402.80 M

eps graph

Stock Performance

Shares of Lumentum Holdings were trading at $80.77 as of May 10. Over the last 52-week period, shares are up 9.82%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

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


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Posted-In: BZI-EPEarnings