Earnings Preview: Lululemon Athletica

Lululemon Athletica LULU announces its next round of earnings this Thursday, June 03. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

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

Lululemon Athletica EPS is expected to be around $0.9, according to sell-side analysts. Sales will likely be near $1.12 billion. Lululemon Athletica earnings in the same period a year ago was $0.22 per share. Quarterly sales came in at $651.96 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 analyst consensus estimate would represent a 309.09% increase in the company's EPS figure. Revenue would be up 71.79% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the past 52-week period, shares of Lululemon Athletica have declined 0.41%.

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 16:30:00 ET and can be accessed here.