Benzinga | Feb 1, 2021 10:16AM EST

Earnings Outlook for Lumentum Holdings

On Tuesday, February 02, Lumentum Holdings (NASDAQ:LITE) will release its latest earnings report. Benzinga's outlook for Lumentum Holdings is included in the following report.

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

Analysts expect Lumentum Holdings earnings of $1.9 per share. Revenue will likely be around $480.68 million, according to the consensus estimate. In the same quarter last year, Lumentum Holdings reported EPS of $1.53 on revenue of $457.80 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

If the company were to match the consensus estimate, earnings would be up 24.18%. Sales would be have grown 5.0% from the same quarter last year. Lumentum Holdings's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 1.47 0.82 1.05 1.29EPS Actual 1.78 1.18 1.26 1.53Revenue Estimate 441.82 M 349.21 M 409.09 M 452.23 MRevenue Actual 452.40 M 368.10 M 402.80 M 457.80 M

Stock Performance

Shares of Lumentum Holdings were trading at $93.8 as of January 29. Over the last 52-week period, shares are up 8.14%. Given that these returns are generally positive, long-term shareholders are probably satisfied 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.