Benzinga | Jun 7, 2021 10:04AM EDT

Limoneira's Earnings: A Preview

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 Limoneira management projections, analysts predict EPS of $0.06 on revenue of $45.44 million. Limoneira's loss in the same period a year ago was $0.08 per share. Quarterly sales came in at $39.57 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.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 175.0%. Revenue would be up 14.83% from the year-ago period. Limoneira's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q1 2021 Q4 2021 Q3 2020 Q2 2020EPS Estimate -0.27 -0.21 0.01 0.04EPS Actual -0.25 -0.42 0.10 -0.08Revenue Estimate 36.90 M 29.19 M 46.50 M 40.70 MRevenue Actual 38.27 M 29.77 M 53.56 M 39.57 M

Stock Performance

For a full 12 months, the return has risen by 40.27%. 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.