Benzinga | Oct 26, 2020 10:20AM EDT

Preview: Lattice Semiconductor's Earnings

Lattice Semiconductor (NASDAQ: LSCC) announces its next round of earnings this Tuesday, October 27. Here is Benzinga's everything-that-matters guide for this Tuesday's Q3 earnings announcement.

What Are Earnings, Net Income, 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

Based on Lattice Semiconductor management projections, analysts predict EPS of $0.16 on revenue of $100.98 million. In the same quarter last year, Lattice Semiconductor announced EPS of $0.17 on revenue of $103.47 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 estimate would represent a 5.88% decline in the company's earnings. Sales would be down 2.41% from the year-ago period. Lattice Semiconductor's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.15 0.14 0.15 0.15EPS Actual 0.17 0.15 0.17 0.17Revenue Estimate 100.02 M 98.26 M 100.06 M 103.07 MRevenue Actual 100.59 M 97.32 M 100.24 M 103.47 M

Stock Performance

Shares of Lattice Semiconductor were trading at $34.72 as of October 23. Over the last 52-week period, shares are up 84.4%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lattice Semiconductor is scheduled to hold the call at 17:00:00 ET and can be accessed here.