Benzinga | Mar 10, 2021 10:10AM EST

Earnings Outlook for Lineage Cell Therapeutics

Lineage Cell Therapeutics (AMEX:LCTX) announces its next round of earnings this Thursday, March 11. Here is Benzinga's everything-that-matters guide for this Thursday'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

Lineage Cell Therapeutics EPS loss is expected to be around $0.05, according to sell-side analysts. Sales will likely be near $920.00 thousand. Lineage Cell Therapeutics EPS in the same period a year ago totaled $0.03. Sales were $1.24 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.

If the company were to report earnings in line when it publishes results Thursday, earnings would be down 66.67%. Revenue would be down 25.87% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.04 -0.04 -0.05 -0.05EPS Actual -0.05 -0.04 -0.06 -0.03Revenue Estimate 430.00 K 560.00 K 710.00 K 1.03 MRevenue Actual 571.00 K 386.00 K 514.00 K 1.24 M

Stock Performance

Shares of Lineage Cell Therapeutics were trading at $2.26 as of March 09. Over the last 52-week period, shares are up 249.95%. 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. Lineage Cell Therapeutics is scheduled to hold the call at 16:30:00 ET and can be accessed here.