Benzinga | Mar 9, 2021 10:06AM EST

Earnings Outlook for Limoneira

Limoneira (NASDAQ:LMNR) unveils its next round of earnings this Wednesday, March 10. Get prepared with Benzinga's ultimate preview for Limoneira's Q1 earnings.

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

Limoneira's per-share loss will be near $0.23 on sales of $36.90 million, according to Wall Street analysts. In the same quarter last year, Limoneira announced EPS of $0.3 on revenue of $41.66 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 23.33% increase in the company's earnings. Sales would be down 11.42% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.21 0.01 0.04 -0.2EPS Actual -0.42 0.10 -0.08 -0.3Revenue Estimate 29.19 M 46.50 M 40.70 M 43.05 MRevenue Actual 29.77 M 53.56 M 39.57 M 41.66 M

Stock Performance

For a full 12 months, the return has risen by 17.82%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Limoneira is scheduled to hold the call at 16:30:00 ET and can be accessed here.